Overview of the Office Market in Mexico City
The Mexico City office market, specifically Class A and A+ properties, is experiencing a phase of adjustment and stabilization, pointing towards sustained recovery. Although the vacancy rate stands at 20.6% by the end of the third quarter of 2025, which is still above the optimal level (10%-12%), the sector has significantly reduced vacancy levels observed during the pandemic, when it was around 25%.
Key Player: Daniela Soriano, Senior Manager at Colliers Mexico
Daniela Soriano, Senior Manager of the Corporate Office Services team at Colliers Mexico, explained in an interview with El Economista: “Today, we have a vacancy rate of 20.6%. Although this is not yet in a healthy range, it has improved substantially when compared to the most critical years post-pandemic.”
Less Construction, More Occupation
A significant driver behind this trend is the return to offices. “Many companies have made attendance mandatory again, which has driven space absorption,” Soriano noted. Additionally, the decrease in new real estate developments has limited supply and contributed to maintaining market stability.
According to Colliers’ report, net absorption accumulated reached 159,000 square meters, a 19% decrease from 2024 but a 51% increase compared to 2023. Soriano explained, “This behavior reflects a market moving towards balance, though it’s still far from pre-pandemic levels.”
Soriano estimated it could take four to five years before the market becomes “truly healthy,” with vacancy rates between 10% and 12%. A significant challenge, she says, is that “most available buildings are in gray construction, posing a challenge for tenants seeking turnkey spaces with limited capital expenditure (Capex).”
CBD vs SBD: Distinct Opportunities in Two Markets
The Mexico City corporate market is divided into two main zones: the Central Business District (CBD), including Reforma, Polanco, and Lomas Palmas, and the Suburban Business District (SBD), encompassing Santa Fe, Insurgentes, Bosques, Interlomas, and Periférico Sur.
The weighted average price in the capital is US$22.60 per square meter/month, with notable differences between the two corridors: US$25.9 in the CBD and US$21.5 in the SBD, according to Colliers data.
“The CBD remains attractive for large corporations and multinationals with projects like the new phase of Antara or the Miyana complex. However, we also see a resurgence in suburban areas like Santa Fe, where negotiation conditions are more flexible and rents are more competitive,” Soriano detailed.
In these peripheral corridors, discounts between the listed price and closing price can reach 35%, especially in long-term contracts. “This presents a clear advantage for companies seeking stable cash flow and high-quality spaces at lower costs,” she commented.
Technology, Consumption, and Fintech: Most Active Sectors
Although demand recovery is gradual, some industries are driving space absorption more consistently. “The technology, Fintech, consumption, and services sectors have contributed the most to this reactivation,” Soriano pointed out.
During the pandemic, many companies left well-conditioned offices, generating an immediate availability of “plug & play” spaces ready for occupation. “This immediate availability is now a significant attraction for tenants seeking flexibility and shorter installation times,” she added.
Investment and Incentives in a Tenant Market
In terms of investment, Foreign Direct Investment (FDI) grew to 34,265 million US dollars in the second quarter of 2025 compared to 31,096 million US dollars in the same period of 2024, according to Colliers’ report. This increase reinforces confidence in Mexico as a regional headquarters destination.
However, the market remains tenant-friendly, leading property owners to offer new incentive schemes: staggered rents, grace periods of up to 12 months, and support for office conditioning (tenant improvements).
“We’ve seen many owners open to negotiation. They seek formulas that maintain property value without devaluing the asset but offer flexibility to tenants,” Soriano explained.
Outlook for 2026
By the end of 2025 and the beginning of 2026, Colliers anticipates a stabilization trend. “We won’t see pre-pandemic rates, but we will have a better absorption pace and more dynamic occupation as companies solidify their office return strategies,” Soriano projected.
The focus, she concluded, will be on optimizing spaces, promoting collaborative environments, and enhancing employee experiences. “We’re still in a tenant market with significant opportunities for reconversion, relocation, or quality improvement. It’s the ideal time for a ‘fly to quality’ in Mexico City.”
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