The corporate market in Mexico City has continued its momentum towards a gradual and sustained recovery in gross demand, which registered 175 thousand square meters at the end of the third quarter of 2022, reflecting an increase of almost 160% compared to the same quarter in 2021.

Despite the improvement in demand, new corporate projects have not yet started, and the movements registered in the construction indicator are due to decreases caused by the delivery of projects that culminate in the period and that go on to increase the inventory in the city, which increased by almost 35 thousand square meters.

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The new offer was concentrated in its entirety in seven class B buildings, mainly located in just over 70% of the Insurgentes submarket. The rest were located in Polanco and Reforma. The net profitable areas that were added in Insurgentes range from 1.7 to 10.3 thousand square meters, while those of Reforma and Polanco range from 1.5 to 3.8 thousand square meters.

In global terms, the construction indicator reached 816 thousand square meters at the end of the third quarter and represents 11% less than what was under construction a year ago and 38% less than what was recorded three years ago in the same period prior to the pandemic.

A good part of these buildings required more time than originally planned and although they are not yet occupied, they will have a high probability of coinciding with the demand that will come, since they are new Class B buildings in medium-sized formats.

The project with the largest area that culminated exceeds 10 thousand square meters is located on Insurgentes, configured over six stories high, and is delivered in gray work.

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Another interesting phenomenon is the containment of vacancies that has allowed net demand to remain close to 68 thousand square meters during 3Q 2022, very similar to the amount registered in the previous quarter, which is why it spins two consecutive quarters in positive after the setback that it registered during the beginning of the year.

In the remainder of the year and the first half of 2023, more settlements are anticipated, since many of the projects that are advancing are in the final finishing phase, which could mean that the vacancy does not adjust downward so quickly, but rather remain stable around 22% as has been the behavior of this last year.