During the year just ended, the office market recovered and successfully faced various challenges thanks to its ability to adapt in all facets of the real estate business.

Due to the 13% appreciation of the Mexican peso against the dollar at the end of 2023, the income assumptions of the office portfolios had to be adjusted downwards due to the economic conditions that affect contracts in dollars.

This is mentioned in Solili's Q4 2023 Office Report, which highlighted that 2023 closed with a national vacancy rate of 18.1%, representing a notable reduction compared to the 20% recorded at the end of 2022.

In Tijuana, this reduction is notably accentuated, where vacancy is adjusted downward by 6 percentage points, closing with 1.6%, thus marking the lowest rate nationwide. Guadalajara and Querétaro follow with vacancy rates of 3.7 and 3.1%, respectively. In Mexico City (CDMX), the availability of vacant spaces exceeds 2.5 million square meters (m2), which is equivalent to 20.3%.

Check here: 4Q 2023 Offices Report, national gross demand reports an annual increase of 23%

“Gross demand manages to advance in the midst of a recovery scenario, which quarter by quarter has allowed an annual increase of 23% at the national level, with more than one million 83 thousand m2 of offices leased during the period,” the report mentions.

CDMX is positioned as the most representative office market in the country by exceeding the average increase at the national level, a third above the accumulated gross demand in 2022. Tijuana emerges as the market with the highest percentage growth in 2023, registering an increase of 113% compared to 2022, ending the year with more than 26 thousand m2 of gross demand. This growth, he explains, is attributed to the arrival of various relocation processes to the border and expansions that demand additional space.

The report indicates that the 4Q23 gross demand in CDMX shows a trend during the first nine months of 2023, where greater activity is recorded in the submarkets of Insurgentes, Polanco and Santa Fe. This fact indicates that the recovery is significantly permeating in the main submarkets of the country's capital.

“However, we have also observed an equitable amalgamation of contracts denominated in national currency, characterized by the inclusion of early delivery periods that have provided flexibility in certain negotiations, thus favoring tenants,” the report emphasizes.

Throughout 2023, rental prices remained stable, placing CDMX and Monterrey at the end of 2023 at $21.00 and $17.80 per m2 per month, respectively.

Of interest: Construction is reactivated in CDMX due to low industrial vacancies

The outlook for early 2024 outlines emerging opportunities for several projects that were in the planning phase. Among these projections, a promising approach stands out in the implementation of new uses, the main beneficiary being a combination of shared spaces that incorporate levels of offices ready to be occupied through time-sharing modalities.

Solili commented that this strategy not only reflects an adaptation to changing trends in the work environment, but also signals an innovative approach that takes advantage of the flexibility and efficiency offered by these shared spaces in the 2024 outlook.

At Solili you can check offices available in Guadalajara and Querétaro

Original note