At the end of the first month of 2024, the office market in Mexico is characterized by its promising prospects, evidencing continued attractiveness for office investments in the country.

Gross demand closes the month reporting a figure of 115 thousand square meters leased of office spaces, where Mexico City is the market with the highest demand, capturing 95 thousand square meters of the total lease nationwide.

In addition to the country's capital, the markets that presented the highest demand figures during the month were the cities of Monterrey and Guadalajara, which reached figures of 10.7 thousand and 6.5 thousand square meters, respectively.

In general terms, the demand for offices continues to show significant growth, with an increase of 18% compared to the same period in 2023. The case of Guadalajara is particularly notable, where gross demand tripled compared to what it reported during January 2023. Other markets such as Querétaro and Mexico City also recorded increases in demand, with increases of 23% and 20%, respectively.

At the national level, the move outs activity remains at moderate levels, totaling 41 thousand square meters at the end of the month. The country's capital concentrates 85% of the spaces that were vacant during the first month of the year. However, nationwide, leasing activity in office spaces exceeds three times the space that was vacated.

The construction of office buildings nationwide reached nearly 1.3 million square meters at the end of January, with Mexico City and Monterrey leading with 58% and 19% of the projects under construction, respectively. However, the new supply at the national level remains at zero figures since during the month no buildings were incorporated into the inventory.

During the first month of the year, most markets did not record the start of new office construction, except Mexico City, which stood out as the only market that witnessed the emergence of new projects, marking a vigorous start to the year with a total of 112 thousand square meters under construction.

Although office developers have been closely observing market behavior before embarking on new projects, the country's capital reports the start of two new class A buildings, projects that focus mainly on Reforma's corporate corridors, with one building of 62 thousand square meters, and the Polanco corridor, with another of 50 thousand square meters.

Nationally, the highest rental prices are recorded in Mexico City, with an average of $21.07 USD per square meter per month, closely followed by the border city of Tijuana, with $20.93 USD per square meter per month. Tijuana, in turn, stands out as the market with the lowest vacancy rate in the country, closing the period with just 1.7%.

The Puebla office market registered the highest vacancy rate, reaching 25.8% of vacant space at the end of the month, while reporting an average price of $13.90 USD per square meter per month, being the second lowest nationwide. León remains the market with the lowest price in the country, located at $12.50 USD per square meter per month.

In general, at the end of the first month of 2024, the office market in Mexico presents encouraging behavior and continued interest from corporate investments in the country. Demand has remained robust, especially in key cities such as Mexico City, Monterrey and Guadalajara. Despite the challenges, the sector shows dynamic activity, with projects underway. These indicators reflect the diversity of the office market in Mexico, showing opportunities and challenges for actors in the corporate sector.