The evolution of the corporate market in Mexico City has been undergoing important changes after the pandemic motivated by the levels of oversupply that arose, starting in 2020.

Not only was the demand halted, but also unemployment was boosted in the face of an uncertain fate in the operation of the companies. Avoiding more contagions and keeping revenue and profitability afloat encouraged important changes in the use of spaces, where the size of areas and occupancy periods were validated in light of the new circumstances.

Of interest: Construction of class A offices has grown nationwide in the last 5 years

Vacancy at the end of Q4 2019 registered 14.4% in the country's capital, reaching its maximum percentage of 23.1% at the end of March 2022, where a slight decrease began to the current record of 21.2% during the month of July 2023.

If we compare the statistics issued by the Solili platform during the first two quarters of 2019, prior to the pandemic, with the results generated during the first two quarters of 2023, we will find interesting trends that show us where the market is headed.

Between January and June 2019, 328,000 square meters of offices were in demand and this indicator for the same period in 2023 amounts to 380,000 square meters, a figure 15.8% higher than the similar period before the pandemic.

Another interesting fact is the type of surfaces that were and are in demand, which shows an important change in the areas that are occupied. During the first semester of 2019, 57% of the closures involved spaces larger than 5,000 square meters, while during the first semester of 2023, close to a quarter of the total demanded surfaces correspond to sizes greater than 5,000 square meters.

This situation is based on the caution taken by institutional investors and specialized trusts in corporate spaces given the uncertainty of how the demand would develop.

At the end of 2019, corporate works in progress totaled 1,183,000 square meters and had already been registering a decreasing trend compared to the plateau observed in 2018.

Although some projects suffered adjustments in the last 4 years, they have been completed and incorporated into the inventory, although at present they are still in execution about 700 thousand square meters, where Reforma and Insurgentes accumulate 59%.

See also: Industrial demand in the North of the country exceeds 1.8 million m² in the course of 2023

Santa Fe, Insurgentes and Reforma in 2019 advanced with buildings that sought to close a milestone in the Mexican and regional markets. It was a time when the most common rental negotiation terms were from 5 to 10 years, with penalty clauses in case of early delivery.

Regarding the number of operations, close to 260 closings were registered during the first half of 2019, when in the same period of 2023 the number exceeds 550 transactions.

In other words, we are facing a scenario of a greater number of closures for much smaller areas, which confirms the fact that companies are undergoing a rationalization in the use of their spaces.