The office market in Mexico continues on a path of recovery and growth, driven by key factors such as the relocation of companies and the decision of corporations to return to in-person schemes. Although it still faces significant challenges, leading indicators show stability. Proof of this is the demand, which remains active despite the challenges of the market.

Inflation at the national level has reported an increase in recent months, reaching an annual rate of 4.78% during the first half of June. In response to this, the Board of Governors of the Bank of Mexico chose to keep the interbank funding rate unchanged for the second consecutive time.

Interest rate cuts are expected to continue throughout 2024, which could create a more favorable environment for the corporate market towards the end of the year. These cuts would reduce financing costs, encouraging investment in new projects and thus boosting activity in the sector.

The exchange rate began the month of July with a price of $18.27 pesos per US dollar, according to figures reported by the Diario Oficinas de la Federación.

The office market continues to experience growth, and at the end of the second quarter of 2024, corporate inventory reaches a figure of 17.4 million square meters, which represents an increase of 2.3% compared to the same period in 2023. Cities That showed greater growth in their inventories were León, Guanajuato with an increase of 9.2% and Puebla with 8.5%.

The national office vacancy rate during the second quarter of 2024 stands at 17.8%. This figure shows an annual decrease of 1.4 percentage units, a direct result of the leases of corporate spaces.

The markets that report the highest vacancy rates in the country are Puebla with 26.5%, followed by Mexico City with 21.4%. On the other hand, Tijuana is the office market that has the lowest vacancy percentage nationwide, closing the second quarter of 2024 with just 2% vacant.

During the second quarter of 2024, leasing activity nationwide reached 230 thousand square meters, which represents an increase of 17% compared to the demand registered during the same period in 2023.

On the national scene, Mexico City remains the epicenter of investments in the office segment, with an 80% share of occupied space. The capital continues to attract companies and corporations seeking to establish their presence in the financial and commercial heart of the country.

Monterrey, for its part, also plays a relevant role, contributing 9% of the gross demand nationwide, while Guadalajara follows closely with 6% of the rental. These three markets represent strategic poles for business growth.

The accumulated demand during the first six months of 2024 amounts to more than 427 thousand square meters of occupied offices in the country. A figure that exemplifies the dynamism of the corporate market in Mexico and confirms that investments continue to flow. The growth in demand for spaces reflects the confidence of companies and their commitment to establishing themselves in a favorable environment for business.

Office rental prices remain stable, with a national average price of $20.15 USD/m²/month. This value is within the same range that was reported in the second quarter of 2023, which is an indicator of stability in the market. The consistency in prices reflects a market free of volatility where investor confidence consolidates the corporate sector as a solid segment.

In the office market, Tijuana leads with the highest rental prices nationwide, reaching $22.20 USD/m²/month. Mexico City, for its part, follows closely with an average price of $21.10 USD/m²/month, these two being the only markets in the country that are above $20.00 USD/m²/month.

León is positioned as the corporate market with the most competitive rental prices nationwide, registering $12.10 USD/m²/month. They are followed by Puebla and Querétaro, which report rental prices of $14.50 USD/m²/month each.

Construction activity in the country concluded the second quarter of 2024 with 1.2 million square meters of buildings in the development process. This figure remains at similar levels to those reported during the same period of the previous year, which indicates continuity in investment and expansion of the real estate market.

Although the start of projects maintains a moderate pace, during the quarter the presence of new developments was observed in the market. In Guadalajara and Querétaro, the construction of 13 thousand square meters began in each market. For its part, the country's capital also joined the construction activity, starting projects with 8 thousand square meters.

Current data reflect an active dynamic in the office real estate sector in Mexico, evidencing the determined commitment by companies to expand their operations in national territory. The constant growth in demand for corporate spaces shows that the market continues to offer high-quality spaces that arouse the interest of tenants.

The stability of the market is reflected in rental prices that remain without fluctuations and with investments that continue to manifest themselves in the form of new constructions. National and international companies continue to search for growth opportunities and find fertile ground in the Mexican office market to establish and prosper.