Political and trade relations between Mexico and North America continue to impact multiple economic sectors, including the corporate real estate market.

Uncertainty stemming from the U.S. imposing tariffs has led to a slowdown in office leasing activity in the country’s capital.

Related: Solili Office Report February 2025: Leasing Drops 27% in the First Two Months of the Year

During January and February 2025, office leasing in Mexico City totaled 75,000 square meters, representing a 40% decrease compared to the same period in 2024. This slowdown in demand for corporate spaces has been driven by rising trade tensions between Mexico and its northern neighbor, prompting companies to adopt a more cautious approach.

Class A buildings remain the most in demand, accounting for 80% of total leases in the capital. This trend reinforces companies' preference for properties with high standards in infrastructure, location, and services—factors that are becoming increasingly critical in an ever-changing international landscape.

Read more: Office Demand in Monterrey Doubles in the First Two Months of the Year

Negotiations and agreements under the USMCA (T-MEC) continue to shape the business environment, with policies that encourage investment in strategic and technological sectors. However, uncertainty on both sides of the border could lead to fluctuations in decision-making for foreign companies looking to establish or expand operations in Mexico.