According to the Report on the Mexican office market corresponding to the third quarter of 2021, prepared by Solili, the progress in the National Vaccination Program has allowed the reopening of activities and, consequently, the economic reactivation in the country.

In this way, the demand for offices is slowly recovering, and during 3Q2021 it registered 137 thousand square meters nationwide. This demand was led by Mexico City, with 67 thousand square meters which, although it continues in negative territory, is the lowest value since 2Q 2020.

This represents, for the first time after the pandemic, figures in positive territory; In other words, demand is gradually exceeding unemployment.

Solili mentioned that, although the recovery in demand for offices in the country is slow, growth has been heterogeneous. And cities like Guadalajara, Monterrey or Tijuana have reported better indicators than CDMX; which is the one that has suffered the most from the 

onslaught of the pandemic.

Of interest: Return to offices under a flexible hybrid scheme

In the case of the Monterrey market, during 3Q2021 it registered a gross demand of 30 thousand square meters. This is 71% higher than that registered the previous quarter, and part of it is concentrated in sales operations.

Querétaro, Tijuana and León registered very similar levels of gross demand, with 8.9, 7.5 and 7.3 thousand square meters, respectively. However, when compared to the previous quarter, these markets show an improvement.

The platform indicated that, at the end of 3Q2021, vacancy rates in the country's large office markets, such as CDMX, Monterrey and Guadalajara are above 20%; which indicates that the oversupply persists. In contrast, only three markets have healthy vacancy rates, as is the case of León, Tijuana and Mérida.

In the case of CDMX, the vacancy stood at 22.4% but its growth curve softens slightly since the projects that close out and enter vacant inventories are being added very slowly.

Solili pointed out that the brake that the pandemic put on the construction of offices in the country is slowly beginning to recover.

Check here; Monterrey at the forefront of industrial demand in Mexico as of 3Q21

The city of Monterrey has maintained its pace of buildings and registers constructions that progress in different phases for 252 thousand square meters during 3Q2021.

On the other hand, the CDMX, Guadalajara and Querétaro maintain a downward trend in construction. In these, there have been few projects that have begun construction and there has only been completion, which has projected this indicator downwards.

Meanwhile, Puebla and Mérida have had the start of new projects and little new supply. This has generated that the trend in construction volumes in these cities is on the rise.

However, vacancy rates in the country's large office markets are above 20%; this indicates that the oversupply remains

In Solili you can consult the Real Estate Report of Offices as of 3Q 2021

Original note