June 13, 2023 | #DatozByDatoz
The corporate real estate market in Mexico City had a significantly dynamic start to the year compared to the two previous years. During 1Q 2023, there was a gross absorption, including lease and sales transactions, of 65,000 square meters (m2) of gross leasable area (GLA), nearly triple the absorption in 2022, according to data from Datoz.
The operations of the Real Estate Investment Trusts, known as “Fibras,” listed on the Mexican capital market with office assets in Mexico City (Fibra Uno, Fibra Danhos, and Fibra Soma) reached over 16,000 m2, representing 25% of the total absorption. In other words, 1 out of every 4 square meters leased during the 1Q 2023 were spaces from the Fibras.
With these transactions, both the overall market and the Fibras managed to increase their occupancy rates compared to the previous year.
Fibra Uno, which has the largest inventory of corporate spaces, achieved a 290 basis point growth in the occupancy rate of the office segment, reaching 77.7%. This was a result of absorbing more than 13,000 m2 during the 1Q 2023.
Fibra Uno’s lease transactions took place in various corridors, including Reforma, Insurgentes, Norte, Santa Fe, Bosques, and Lomas Palmas. Noteworthy transactions occurred in buildings such as Punta Santa Fe, Distrito Santa Fe, and Centrum Park.
André El-Mann, CEO at Fibra Uno, mentioned in his letter to investors that the anticipated office activity is already being observed, as the occupancy rate is currently around 78% and trending upwards towards reaching 80% by the end of this year.
Fibra Danhos, one of the largest office property owners in Mexico City, achieved an absorption of nearly 3,000 m2. As a result, its occupancy rate reached 72.60%.
The lease operations of Fibra Danhos were concentrated in Lomas Palmas and Norte corridors, specifically in Parque Virreyes and Toreo buildings.
Fibra Soma recorded a modest gross absorption of 155 square meters, specifically in Tower 1 of Artz mixed-use complex located in Periférico Sur.