The real estate analysis firm Solili presented the results of its office report for 1Q 2022 where it indicated that although the recovery trend continues, there are still significant challenges for a dynamism comparable to pre-pandemic levels.

"Although it is true that it was a quarter with events that generated direct impacts on the office real estate market, the recovery of this segment continued," Solili pointed out, adding that, during the first quarter of the year, a lease of almost 140 thousand square meters, 27% more than that recorded in the same period of the previous year.

Regarding absorption, it remains positive at the national level, however, Mexico City, which is the largest market, was the only entity, of the eight that the firm analyzes, that returned to negative territory with a record of -25,000 square meters, as a result of vacating offices.

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Regarding medium markets, such as Monterrey and Guadalajara, these entities reported a net demand of 7 and 3 thousand square meters, respectively, while the emerging markets with the best performance were Puebla and Querétaro.

In terms of vacancy, the firm highlighted an oversupply, since it at the national level exceeds 22%, while the Mexico City market was placed with an availability of 23%, that is, two percentage points more than what was reported. in the same quarter of the previous year.

"Only the three office markets that report less vacancy than those registered a year ago are the cities of Querétaro, Mérida and Tijuana," Solili pointed out.

For Solili, the office real estate market continues in a field where it depends on the forces that define it, since, for example, inflationary pressure can affect the demand for these spaces if companies start reducing costs, such as rentals of these properties.

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On the supply side, the issue of inflation can undoubtedly affect the increase in prices of construction materials, which forces the developer to make readjustments to their projects in order not to transfer all of said increases to the tenants.

"A trend that we expect to happen in the short term is that class A inventories that are still unoccupied will take advantage of their adaptation towards flexible leasing schemes, while others could explore coworking modalities once they have adjusted the space, the furniture and the technology to their spaces", highlighted Solili.

Given the context of this market, it will be important for the firm to innovate with products where technology and sustainable elements are the protagonists, since corporations would be willing to occupy real estate spaces with these characteristics.

In Solili you can check available offices in Polanco, Reforma, Norte and Insurgentes

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