Due to its privileged location in Mexico City, the corporate real estate brokers of Insurgentes, Polanco and Reforma have maintained a positive demand until before the health emergency caused by COVID-19 in the first quarter of 2020.

According to an analysis by the Solili platform, at the end of 2020, the office market in Mexico City closed with an increase of 3% in its inventory, a rate lower than that reported in previous years.

Vacant spaces increased by 0.90% compared to 4Q 2019. The corridor with the highest availability of offices in Insurgentes, followed by Polanco and Reforma.

For example, the Reforma office corridor has an inventory of 1,714 thousand 904 square meters, of which there is a vacancy of 307 thousand 679 square meters.

According to Solili, during the last quarter of 2020 it registered a negative net absorption of 37,584 square meters, which caused the vacancy indicator to increase.

Until January 2021, the average monthly rental price per square meter in this corridor was $ 21.45.

Meanwhile, the Polanco corridor has an inventory of one million 973 thousand 277 square meters of which it has 327 thousand square meters vacant. At the end of the last quarter of 2020, it registered a negative net absorption of 41,779 square meters.

On the other hand, the Insurgentes corridor has an inventory of 2 million 253 thousand 550 square meters with a vacancy of 356 thousand square meters and ended 2020 with a negative net absorption of 17 thousand 182 square meters.

Despite these figures, the corporate real estate market has great areas of opportunity to reverse these indicators.

The tenants continue to make downward modifications in the starting prices and with changes in the type of currency in which the contract is closed, it is now more common to sign contracts in Mexican pesos, which was previously in US dollars.

In order to make office rental more attractive and incentivize leasing, corporate space marketers have launched campaigns with special discounts on the rental price, lower maintenance prices, contracts with shorter lease periods, the supply of furnished offices, among other adjustments.