The reality at the end of the second quarter of 2021 is that the office market of 14.7 million square meters has been concentrated mainly on Mexico City, which owns 77% and Monterrey with 11%.

Guadalajara ranks third in the inventory with 775.5 thousand square meters, followed by Querétaro, Puebla and Tijuana with 420 thousand, 304.6 thousand and 267.7 thousand square meters, respectively.

Finally, León and Mérida with the most incipient corporate development register an inventory of 165.7 thousand and 125.6 thousand square meters, respectively.

In December 2018, the president of Mexico announced that several of the federal agencies will migrate to other states and argued that decentralizing the government responded to a request to achieve greater economic growth throughout the country.

Administrative decentralization implies that the Executive Branch transfers functions and entities of federal concern to local governments, in order for them to be exercised and operated according to their particular needs.

Check here: Is the housing sector part of the solution for the oversupply of offices in Mexico City?

The changes include migrations of multiple official agencies that will leave the capital to other states, in a first phase where, for example: Public Education would go to Puebla, the Ministry of the Environment and Natural Resources would be based in Mérida and other agencies will be installed in Oaxaca, Morelos, Tlaxcala and Veracruz.

In a second stage, it was contemplated that Guadalajara would receive the Ministry of Agriculture and Rural Development, the Institute of Social Security and Services for State Workers, while Toluca will house the Institute of the National Housing Fund for Workers (Infonavit ).

From Querétaro the Public Function will function and from León in Guanajuato the Secretary of Labor and Social Welfare will dispatch. Other destinations such as Pachuca in Hidalgo and Morelia in Michoacán would receive other dependencies.

The Secretary of Defense and Navy, the Interior, Finance and Foreign Relations remain in the capital arguing strategic reasons.

Of interest: Quality in construction of office buildings maintain stable prices even with oversupply

Prior to the pandemic, some changes had begun to materialize, but not with the speed initially programmed, although developers in each location have already begun to evaluate the opportunity that these changes represent.

The impact not only considers the direct personnel that would be transferred but also includes a series of peripheral activities associated with government activity that requires providing spaces for related administrative, legal, accounting, commercial and residential services in the cities that will receive the new dependencies.

Undoubtedly, this measure will reinforce the growth of the corporate fabric in cities where this annual increase in 2Q 2021 has already been noticed compared to 2Q 2020 of 17.5% in Guadalajara, 14.9% in Querétaro, 11.9% in Tijuana, and 7.5% in Puebla. .

These percentages are well above the 3.4% annual capital inventory increase, which in previous years was 6.8% between 2021 and 2020.