Solid performance in Monterrey's office market

During the last quarter of 2021, inventory in the Monterrey office market grew due to the construction of new buildings.

Solid performance in Monterrey's office market
Monterrey's office market performs positively. Photo by Cande Westh / Unsplash

Although the office market has been one of the hardest hit due to the impact of the coronavirus, there are regions where its performance has rebounded, such as the city of Monterrey, Nuevo Leon, which has good prospects due to the activity reported during 2021. According to the real estate analysis firm Solili, during the fourth quarter of 2021, the Monterrey office market was the one that had the best performance nationwide, with a gross absorption of just over 27,000 square meters in that period.

As in the third quarter, there was a continued preference for both refurbished and gray workspaces, and there was an increase in transactions for rental space over sales. The corridor with the highest value of square meters was Valle Oriente. The construction of new office space continues at a good pace for the progress of construction; however, it has been detected that some developments are seeking to modify the percentage allocated to office space by a lower amount and include residential use in such projects.

During the last three months of 2021, five office buildings were delivered, adding 40,500 square meters to the city's inventory, such as, for example, the corporate tower of the Galerías Valle Oriente Ampliación complex, owned by Fibra Uno, which is fully leased and consists of 12,100 square meters of area for office use. The tower is located near important complexes such as GM Capital's Distrito Armida and U-Calli's Parque Corporativo Valle Oriente, where both domestic and foreign companies are located.

According to the analysis, Torre 411 completed construction and has 14,700 square meters of new office space. In the last quarter of 2021, office vacancy in the city reached nearly 5,300 square meters, a decrease of almost 66% compared to the previous quarter and 68% compared to the same period in 2020. This is also reflected in the net absorption, which from the second half of the year shows positive numbers and if it continues in the same way, it could begin a process of stabilization in 2022.

According to the firm's data, the average price indicator in the region ended 2021 at 18.32 per square meter, an increase of 5% compared to November of the previous year. The balance of this market positions it as the best performing at the national level, and it is expected that by the second half of 2022 if the trend of the last two quarters of 2021 continues, it could reach the levels it had before the pandemic.

Source: El Economista