Background on Carolina León Soriano and ADAGI
Carolina León Soriano, the president of the Asociación para la Defensa y Apoyo al Gremio Inmobiliario (ADAGI), is a prominent figure in Puebla’s real estate sector. ADAGI, the organization she leads, plays a crucial role in advocating for and supporting the real estate industry in Puebla, Mexico.
The Office Oversupply Issue in Puebla
According to León Soriano, Puebla is currently experiencing a significant oversupply of office spaces. In the past four years, numerous projects were undertaken that did not align with market demands. This has resulted in a 35% vacancy rate for office spaces, with some being repurposed for coworking arrangements.
The Rise of Coworking Spaces
León Soriano explained that there is a growing market for small office spaces catering to representation purposes rather than accommodating an in-house team. Many employees now work remotely, maintaining productivity without occupying traditional office spaces.
She further elaborated that the conversion of large office spaces into smaller coworking areas has become a strategy for maximizing revenue for building owners. These spaces are now being rented out in flexible packages, allowing clients to use them for meetings or part-time work.
Impact on Rent Prices and Sales
The oversupply has led to an 8% decrease in rental and sales prices for office spaces. Developers are eager to expedite their return on investment, contributing to the lower prices.
León Soriano pointed out that not everyone can afford rents of 50,000 pesos per month for an office space. Moreover, high vacancy rates are not beneficial for real estate investors.
She admitted that the sale of office spaces is sluggish, as real estate investors perceive the market as uncertain and lacking short-term investment returns.
Puebla’s Attractiveness for Regional Office Installations
Despite the oversupply, Puebla remains an attractive location for national companies to establish regional offices. These companies help maintain stable occupancy rates by renting entire floors, thus supporting the overall office market.
Among Puebla’s clients are banks, insurance companies, consulting firms, food industry representatives, and others.
A Nationwide Phenomenon
León Soriano emphasized that Puebla’s high office vacancy rate is not unique; it is also prevalent in other major Mexican cities like Mexico City and Monterrey. These cities have modern office buildings, but they are not being leased quickly due to the oversupply.
She stressed the importance of developers recognizing that office space demands have evolved. Now, 70% of rental spaces correspond to fixed areas, while the remaining portion is allocated for hybrid and coworking operations.
Key Questions and Answers
- What is the main issue in Puebla’s office market? There is an oversupply of office spaces, resulting in a 35% vacancy rate.
- What changes have occurred in office space demands? There is a growing preference for smaller, representation-focused office spaces and an increased interest in coworking arrangements.
- How has the oversupply affected rental and sales prices? Prices have dropped by 8% due to the oversupply.
- What is the impact on Puebla’s attractiveness for regional office installations? Despite the oversupply, Puebla remains an attractive location for national companies to establish regional offices, contributing to stable occupancy rates.
- Is Puebla’s situation unique? No, high office vacancy rates are also observed in other major Mexican cities like Mexico City and Monterrey.
