Background on Fibra MTY and its Significance
Fibra MTY, a prominent real estate company based in Monterrey, Nuevo León, Mexico, has recently signed a significant 10-year office lease agreement. The deal, brokered by Colliers International in Monterrey, covers over 6,700 square meters and has the potential to expand up to 8,000 square meters. This transaction surpasses the total volume of leases recorded in the first quarter of 2025 and stands as the most substantial deal in the sector since the onset of the pandemic.
Key Details of the Lease Agreement
The lease contract is denominated in US dollars and includes annual increases tied to inflation. The lessee is an existing client within Fibra MTY’s industrial portfolio, reinforcing the quality of service and long-term relationship stability that Fibra MTY is known for, according to a press release.
Office Market Absorption in Monterrey
Sergio Resendez, General Director of Colliers, elaborated on the Monterrey Office Market Report for Q1, explaining that global trade uncertainty arose following President Trump’s announcement of tariffs up to 25% on exports, primarily steel and aluminum, since January.
This uncertainty was reflected in the Monterrey Office Market Report for Q1, showing a net accumulated activity of 27,507 square meters across all classes in various submarkets. This represents a -14% difference compared to 2024. The submarkets with the highest net accumulated activity were Santa María, Centro, and Valle Oriente.
Moreover, the net accumulated absorption in Q1 was 6,380 square meters, a -79% decrease compared to the same period in 2024. The Santa María market experienced the highest absorption.
As of March 2025, there are 12 office properties under construction being monitored, totaling 113,168 square meters. Completion is anticipated during 2025-2026.
In terms of planned properties, there are 61,909 square meters being considered for addition to the inventory between 2025-2026.
Office Market Availability in Monterrey
The availability rate for the Monterrey office market in Q1 was 18%, an increase of 1.2 percentage points compared to 16.8% in Q1 2024.
Key Questions and Answers
- What is Fibra MTY and why is this deal significant? Fibra MTY is a leading real estate company in Monterrey, Nuevo León. This 10-year office lease agreement, brokered by Colliers International, is significant as it surpasses the total volume of leases recorded in Q1 2025 and is the largest deal since the pandemic began.
- What does the lease agreement entail? The agreement covers over 6,700 square meters with potential expansion to 8,000 square meters. It is denominated in US dollars with annual increases tied to inflation, and the lessee is an existing client within Fibra MTY’s industrial portfolio.
- How does this deal impact the Monterrey office market? The deal reflects global trade uncertainty following President Trump’s tariff announcements. Despite this, the Monterrey office market availability rate increased to 18% in Q1 2025 from 16.8% in Q1 2024.
- What are the current trends in Monterrey’s office market? There are 12 properties under construction and plans for additional properties, totaling over 175,000 square meters. However, net absorption has decreased by 79% compared to the same period in 2024.
