The office real estate segment is beginning to get back on track after the start of the health emergency and Mexico City (CDMX), which is one of the main markets, has shown signs of recovery in terms of absorption, either due to the reconversion of spaces or by the boost of nearshoring in the industry.

After practically two years with negative absorptions, that is, the lowest rent of space with respect to vacancies, in the accumulated of the first half of 2022 numbers close to those of 2019 were observed, without reaching these yet.

Sergio Calderón, director of Global Corporate Services at Newmark, explained that one of the main triggers for the figures is the return to offices in search of improving productivity, as well as a greater demand for space by startups seeking to take advantage of the price reduction in rents.

Check here: Office prices in Mexico recover, they are 5% below pre-pandemic

On the other hand, the vacancy of space was also reduced by more than half with respect to the meters that were vacated in the first half of 2021.

For Solili, the improvement in the vacancy rate of corporate spaces in Mexico City was based on three main aspects: greater demand, better absorption of available space and the reconversion of buildings.

On the subject of reconversion, Solili highlighted that the factor of removing obsolete space from inventory or with the opportunity of another turn was a strategy taken into account by building managers, who have already managed to transform nearly 120,000 square meters of offices.

“Already in November 2021 Fibra Uno (FUNO) had offices that were transformed into clinics and hospitals, generating the double advantage of occupying these properties and at the same time addressing the lack of health infrastructure that became evident in the pandemic,” he pointed out. Solili in his analysis. Another similar case is Plaza Satélite, in the Valley of Mexico, where the mixed-use building will convert its office space into hospital facilities.

It should be remembered that the Government of Mexico City promoted an agreement with the private sector to facilitate the process of converting the land use of office spaces, to build affordable housing.

Of interest: Office vacancy in CDMX stops

"With this, the Ministry of Urban Development and Housing (Seduvi) planned that at least 50 office buildings be converted into apartments in the coming months, for which facilities will be granted for the change of land use of the buildings," Solili pointed out.

"The challenge required that the capacities of the current water, drainage and electricity services allow progress in the reconversion."

Sergio Calderón from Newmark recalled that, although the numbers for corporate space rentals during the first half of 2022 were favorable, the challenge is that the oversupply of space continues.

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

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