The oversupply of corporate spaces in Mexico City already reaches more than 2,500,000 square meters, which represents 22.5% of the capital's office inventory at the end of November 2021.

The Norte, Insurgentes, Santa Fé, Polanco y Reforma submarkets account for 80% of this oversupply, being the North submarket  where the largest amount is located with more than 478 thousand vacant square meters.

The submarket with the lowest oversupply in the city is Lomas Altas with just over 59 thousand square meters, although that amount represents the highest relative percentage that represents 41.7% of its inventory.

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Faced with this panorama, in 2021 there was practically no start of new construction, so the total volume of the same at the beginning of the year, which was more than one million square meters, has decreased by just over 920 thousand square meters in November of 2021.

The difference between these two values practically corresponds to the buildings that finished construction during these eleven months and that became part of the city's inventory.

On the demand side, the second quarter of the year registered the lowest value with 55 thousand square meters with a slight recovery towards the third quarter of the year where it registered 94.4 thousand square meters.

Given this scenario, the capital developers decided to wait and stopped their bet in this market.

Part of the actions they took on some land with the possibility of corporate use was to analyze the market, technical, legal and financial feasibility from the perspective of a residential or hotel project, which we saw in some cases of Polanco, Reforma and Lomas Palmas.

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Faced with an environment of uncertainty, where the demand for office space is still recovering and vacancy, despite having decreased, is still high enough to take capital net absorption to negative territory, stopping was the best option.

Worldwide and in the case of the capital in Mexico, the significant decrease in demand is a reality when compared to periods prior to the pandemic, when positive net demand figures were handled that exceeded 190 thousand square meters and that probably not they will be achieved again in the short or medium term.

The reality is that this niche, one of the most affected by real estate investment, will undergo many changes in the coming years, both in business models, changes of uses or reconversions that allow institutional developers to float.