Chapultepec Uno, The Summit Santa Fe, and Puerta Polanco are some of the new developments in the city that together will add more than 250 thousand m2 of profitable area. The luxury office sector in Mexico City closed in 2018 with an inventory of 6.7 million square meters (m2), which this year is estimated to add around another million. If this is done, it will involve an expansion of 15 percent, according to data from the SiiLA Mx real estate consultancy.
Experts from the real estate industry considered that during 2019 the dynamism in the delivery of new mega offices will continue in the capital of the country, where Insurgentes, Santa Fe, Reforma, and Polanco will be the corridors with the largest number of projects.
Among the corporate buildings that are scheduled to open this year are M Tower in Mítikah, Chapultepec Uno, The Summit Santa Fe, South Tower District Santa Fe, and Polanco Gate. These will together add more than 250 thousand m2 of the profitable area, that is, 25 percent of the total new inventory that will be incorporated this year in the capital of the country.
Experts warned of a visible oversupply of office space, so according to Avison Young firm estimates, unemployment will reach this year a rate of up to 22.6 percent, up from 16.1 percent by the end of 2018. "This availability rate will put downward pressure on rental prices per square meter, but we hope it will not be important," said José Carlos Alemán, General Manager of SiiLA Mx.
Joaquín Zapiain, executive vice president of corporate services at Coldwell Banker Commercial, said the drop in prices has already begun, given that 18 months ago there were incomes of more than 30 dollars per square meter per month and now they are up to 24 dollars.
Guillermo Sepulveda, the partner, and CEO in Mexico of Avison Young assured that the suspension of permits for the construction of megaprojects that maintains the government of the CDMX can be an involuntary respite for the office market before the accelerated construction of these.
Tower M (Mítikah)
During the third quarter of 2019, the first corporate tower of the large Mítikah real estate complex of Fibra Uno will be delivered. This is the M tower, which will have a profitable area of 60 thousand 300 m2, out of a total of 248 thousand m2 of offices that will be in this development. This building will have 35 levels, 30 of them of offices, and the rest will be commercial. M Tower will house a Sky Lobby on level 6 and a Sky Office on the 34th floor, plus a heliport and 8 parking levels in the basement. At the close of the third quarter of 2018, Fibra Uno had invested 3 thousand 504 million pesos in Mítikah. Sepúlveda said that this is one of the most anticipated projects in the real estate sector.
T59, a group formed by Arquitectoma and Grupo Marca Arquitectos, develops one of the most ambitious mixed-use complexes of the year: Chapultepec Uno, in which 6 billion pesos will be invested. At the end of the third quarter of this year will open the doors of the tower that houses offices, the first Ritz-Carlton Hotel, and ultra-luxury residences in 58 levels, making it the second tallest building in the CDMX with 241 meters of height, only after the Reforma Tower that has 246 meters. Arturo Lechuga, corporate offices director of Coldwell Banker Commercial, said that the office area is 27 thousand m2 on 21 floors, which will be occupied by high-level companies, including corporate financial, legal and consulting.
The Summit Santa Fe
The Summit will open in the Santa Fe corridor, a FREL project that will have a tower with luxury offices, commercial and public spaces on the ground floor. The building will have 30 levels of corporate spaces with approximately 2 thousand m2 per floor and in total will offer 60 thousand m2, also occupies two buildings with an area of 7 thousand 500 m2. This complex -from which FREL declined to share the investment data-, will be delivered in the autumn and it is expected that national and multinational firms will be its tenants.
Developed by the company Buró, the Puerta Polanco tower is scheduled to operate during the last quarter of this year. This development will have commerce and offices, this last segment will have 50 thousand m2. The complex will have 11 levels and nine basement floors for parking. In addition, among its common areas will be a roof garden with meeting rooms. Zapiain said that this project is located in one of the corridors with the greatest demand of the CDMX, so it has high expectations of being well received by the tenants and placing their spaces quickly.
Torre Sur Distrito Santa Fe
The developer Parks will deliver in the last quarter of 2019 the corporate Torre Sur within the Santa Fe District mixed-use complex, which includes several office buildings. This development will have about 53 thousand m2 of the profitable surface in 19 plants, will have two lobbies and offices for rent from thousand 542 to 3 thousand 270 m2.