The demand for offices nationwide closed in 2021 with 543 thousand square meters, which represented an increase of almost 21% compared to what was registered in 2020, the year in which the ravages of the pandemic were felt more forcefully.

If we specifically analyze Mexico City, the amounts of gross demand for the years 2021 and 2020 were very similar, around 334 thousand square meters, so we could argue that the recovery had more to do with the rest of the markets such as Guadalajara. 

Guadalajara, Querétaro, Tijuana y Monterrey, where the increasing gross demand were 183%, 181%, 110% and 77%, respectively.

Another phenomenon that stood out in 2021, in addition to the oversupply exhibited by some markets, was the brake on new construction, which has been a counterweight so that the average rental price will not adjust further downwards.

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We also observed during 2021 a review of the projects by the developers, both of existing buildings and those under construction, seeking to validate the output product and how feasible it was either a change of use or a resizing in the concept of its space in in terms of size, finishes or propose a flexible lease option in terms of time and price.

The last two quarters of 2021, having already adopted the hybrid or face-to-face work modalities that best fit their operations, a slowdown in unemployment began to be registered, although the year started with the presence of the new Omicron variant that generated again uncertainty about a full return to activities.

Between January and February 2021, the gross demand for offices at the national level already accumulated 87 thousand square meters, of which about 56 thousand square meters are concentrated in the Metropolitan Area of Mexico City.

Demand trends have been dissimilar when analyzed by type of company. Faced with great uncertainty, the ecosystem of small companies and startups continue to focus their resources on the growth of their core operation, so teleworking and the use of coworking or on-demand spaces become the ones that best meet their needs.

Likewise, medium-sized companies that previously could occupy half a floor began to optimize their spaces by directing the use of offices to the central part of the operation, so that now they would be occupying smaller surfaces, using the space more rationally, under the scheme of hybrid work.

Check here: What markets concentrate the oversupply of offices in Mexico?

The large corporations reoriented and adapted their offices, allocating a greater proportion to multipurpose and collaborative spaces where the surfaces were designed with a greater amount of area per employee under the premise that part of the staff would not be in person every day of the week.

This coordination of work seeks to generate less incidence of people in the spaces in order to comply with health and sanitation guidelines.

It is expected that at the end of the first quarter, at least in Mexico City, vacancy will still have a significant impact, which should once again decrease or close its gap as it had been doing during the last two quarters of 2021.

The start of construction will continue to be cautious, except for some emerging markets and on specific submarkets of great desirability, where some multipurpose projects will begin and in formats of less than 5 thousand square meters of net profitable area.