Strong Performance Driven by Major Firms’ Arrival and Expansion
The Mexican office real estate market kicked off 2025 with its best performance since 2019, fueled by the arrival and expansion of major firms like Netflix, PwC, and Target. However, uncertainty persists due to tariffs and the renegotiation of the Mexico-US-Canada Trade Agreement (T-MEC).
According to SiiLA Mexico, the occupation of 24,433 square meters (m²) of space in corporate buildings during the second quarter of the year reduced the availability rate to 16%, down from 19% last year.
“We’re not yet at pre-pandemic levels, but large rental contracts have improved the outlook. For example, Target has chosen to manage its U.S. operations from Mexico. If more companies show this confidence in the country, office levels will be better,” said Alejandro Delgado, SiiLA Mexico’s general director.
Key Industries Driving Office Rental Demand
In the past year, the industries with the highest volume of office rentals were:
- Products and services (77,000 m²)
- Finance (75,000 m²)
- Real estate (47,000 m²)
- Healthcare services (39,000 m²)
- Technology (35,000 m²)
Reduced Construction Boosts Market Recovery
A crucial factor in the sector’s recovery has been the decrease in new building construction. In the first half of 2025, only 20,000 m² of office space was delivered, a stark contrast to the 600,000 m² built in 2019.
This slowdown in supply has allowed rents to concentrate on existing properties. Delgado noted that, at the current pace, the total available inventory of 1.9 million m² in the country could be exhausted in four and a half years.
“Although tenant departures have decreased, the real estate sector is still in a recovery phase rather than an expansion period,” he added.
Uncertainty Clouds the Outlook
However, total recovery is not without challenges. The T-MEC renegotiation keeps several companies on edge as they consider expanding in Mexico’s office market.
“The expectation is that Mexico will remain the primary commercial partner of the United States. Geographically and commercially, we are in an unparalleled position for this relationship to benefit both countries,” Delgado said.
Despite the uncertainty, the data is not entirely negative. Latin Trade conducted a regional survey revealing that six out of ten building owners in Latin America anticipate a neutral impact from tariffs, while only 28% expects a negative effect and 14% anticipates a positive scenario.
“Regardless of uncertainty or tariffs, North America will have an exceptionally cohesive market in a few years, much more fluid than it was a decade ago,” said Santiago Gutiérrez, Latin Trade’s general director.
According to the expert, the office sector can look forward to “extraordinarily good years” with the relocation of companies once the T-MEC renegotiation concludes.
“The lowest unemployment rate in the past five years is undoubtedly a sign of what’s to come,” he said. Beyond the commercial context, Gutiérrez emphasized that the sector faces a technological transformation and conversion towards sustainable, mixed-use projects.
The integration of tools like artificial intelligence and digital property management systems is becoming a priority to enhance efficiency and respond to new labor dynamics.
“Workers seek comfort and improved mobility, so selecting the right location and incorporating technology into buildings is crucial,” Gutiérrez pointed out.
