The crisis generated by Covid during the last two years has decisively affected the Mexican corporate market, mainly the country's capital, which prior to the pandemic was already on its way to reporting oversupply with 14.4% vacancy and which currently at closing January 2022 registers 22.7%.

The vacant spaces in the capital today exceed 2.6 million square meters, while the gross demand in Mexico City during 2021 was 333 thousand square meters and at that rate it takes between three and four years for the vacancy to be over. below two digits again.

Another important brake indicator in this Mexico City market was the start of construction, which was practically nil during the last two years. step of

almost 1.2 million square meters of construction in progress to 785 thousand square meters that are still being built in January 2022.

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This decision not to start projects by capital developers has affected the 3.1% adjustment that the price has had during the last year, a figure that could be higher due to the high vacancy.

In Mexico City there are five corridors that group 80% of the vacant spaces, the Norte submarket being the largest with 483 thousand square meters followed by the Polanco and Insurgentes submarkets, each with 442 thousand square meters available. Santa Fe and Reforma submarket complete the group with 426 and 326 thousand square meters available, respectively.

Although office spaces are still perceived as an important place to transmit the business culture and to achieve a work and personal balance for workers, the impact of the home office and the high transmission of the new Omicron variant continue to affect a return that is still conditioned by some workers.

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Currently, the new work surfaces are designed under criteria of lower density, which means that each worker has more space since distancing rules must be met, together with the fact that the teams take turns so as not to coincide simultaneously, which affects the decrease in medium and long-term demand.

The corporate sector has been profoundly transformed and spaces now compete to speed up the generation of work experiences and, as large corporations are formally committed to environmental, sustainability and governance criteria, those properties that achieve the certifications and maintenance guidelines and mobility under these concepts will have an advantage over the rest.

Other properties with a lower rating, such as Classes B and C, seek to validate their competitive profile and, if they qualify for another more profitable use, will evaluate their legal, technical, commercial and financial feasibility for a change of use.