With the greater use of the hybrid work model and the future demand for thousands of square meters of corporate spaces, Lorena Fuertes, International Director of Office Transactions at JLL, mentioned that the Class A office market is recovering in Mexico City.

During his speech at the conference “Uncertainty and Utopias. Economic perspectives of Mexico towards 2024”, the director explained that the good levels recorded are thanks to the existence of “big players” in search of office spaces.

Check here: Solili Offices Report, Q3 2023, accumulated national gross demand exceeds 30% compared to 2022

"We have identified 12 companies that in the next six and eight months will demand a total of 135,000 square meters (m2) of spaces."

According to Lorena Fuertes, of the total companies, those that will demand the least space are 6,000 profitable m2, while others would be absorbing 20,000 profitable m2 each.

“The reasons are primarily due to growth and/or relocation to a better building or submarket. Among these companies we can identify services, technology, consumer and financial companies.”

The Mexico City market reports an average of annual transactions between 400 to 600 profitable m2, however, with the demand from the 12 companies, a very good recovery of the corporate market is expected.

“We are beginning to see what many developers and players in this industry were waiting for: the use of offices is going to continue, the hybrid model is finding its feet.”

Of interest: Exchange rate and inflation determine income in the corporate market

Regarding the rental price, he explained that all submarkets, except the North submarket, have already exceeded their lowest level, so stability in current rents or a slight improvement in them is expected.

“We see an increase in average rents of almost 5 percent. “Increase that will improve over time as a result of demand and the slowdown in the construction of new office buildings.”

Likewise, he emphasized that 2024 will be a neutral year and by 2025 there will begin to be a transition to a more favorable market towards the owner than the tenant.

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