The corporate market in Mexico, near the end of the year, has been an example of adaptation and resilience in the midst of a demand that continues a gradual pace of recovery and that in the 11 months that have passed already represents an increase of 75% with respect to the reported demand during the same period in 2022.

Even in the midst of a scenario where demand has been gradually recovering, corporate vacancies in Mexico City and Monterrey in November 2023 report 20.6% and 15.9%, which in turn is equivalent to a downward annual adjustment of 8% and 13 %, respectively.

See also: Toluca, Naucalpan and Tlalnepantla submarkets concentrate the highest volume of vacancies in CDMX

The main office markets in Mexico, such as the country's capital and Monterrey, currently maintain a proportion in the order of 65% of Class A inventory, leaving the remaining 35% for Class B office projects.

Over the course of 2023, we have been able to detect within the periodic tours carried out by the Solili real estate platform projects that have been converted to another use other than the original offices that they had previously planned.

Various class B projects have gone through a complex situation after the pandemic, motivated by the preference of a majority of new office tenants looking for high-end spaces with amenities. On the other hand, Class A projects, whether existing or new projects that have been incorporated into the supply of these main cities, have adapted their prices to compete and capture part of the demand that has been developing.

Under this scenario, owners of both Class A and mainly Class B projects have handled conversion scenarios where developers make minor improvements in amenities to increase sales, such as modifying elevator lobbies, or including cafeterias or gyms until converting buildings into new ones. homes, hotels, commercial spaces or properties intended for health services.

Of interest: Current panorama of supply in the industrial markets of Mexico

Looking ahead to 2024, high interest rates may limit the potential to reconfigure obsolete office spaces, but it is precisely Class B buildings that offer an opportunity in those markets with high population density, where the housing shortage opens a gap for these modifications. .

An example of this, in the case of Monterrey, are the changes of use proposed by projects such as Black Towers, Boreal, Saqqara 2,3 and 4, and Towers II, III and IV of Distrito Armida or the Tower I and Tower II project. of Avanta Gardens located in the Queretaro market, all corresponding to the original use of offices.