Between July and August 2021, the national corporate demand reached 88,600 m²; of which 77.5% are concentrated in Mexico City and Monterrey.

In his latest report on the national office market, Solili highlighted that, as of August 2021, demand has been increasing in most of the monitored markets; while unemployment has decreased.

The platform pointed out that the corporate spaces have been evaluated for uses very different from the one originally conceived. 

Partly because of the oversupply that exists in the country; This is why developers and owners are looking for diverse options that allow them to make their investments profitable.

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Only in Mexico City, the oversupply reached 14.4% at the end of 2019 and went on to register 19.4% at the end of 2020; While at the end of August 2021, 22.1% of vacant spaces were registered.

However, between July and August the slope of this growth has softened. Partly because inventories are no longer fed at the same rate with spaces that enter unoccupied; and, on the other hand, due to the changes in uses that are already reflected in previously empty spaces.

The transformations have been diverse from health, educational, housing, hotels and even some storage warehouses. For example, in the country's capital, the authorities have promoted various works on Paseo de la Reforma avenue and in the downtown area of the city; such as the construction of Torre Porrúa on Juárez 56.

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In addition, in this same period, unemployment reached 103 thousand m² nationwide; of which 78 thousand m² are located in the capital, mainly in the Norte, Reforma, Polanco, Santa Fe and Insurgentes submarkets.

Meanwhile, Puebla, Querétaro, León and Mérida registered vacancy of less than 450 square meters during these two months.

However, if these vacancy rates are compared with those registered in previous months, a slowdown in this indicator can be observed; a trend that will be reflected at the end of the quarter.

“In the remainder of the year and the year to come, there will be many changes and lessons learned for the corporate Mexican market; that has shown strength, endurance and creativity when it comes to reinterpreting the needs of the market, ”said Solili.

Check in Solili the indicators of the CDMX office market as of August 2021

Original note