Strong demand and little supply are leading to a sharp drop in available office space in Mexico City.
BY RONALD BUCHANAN
MEXICO CITY — With vacancy rates heading toward zero, developers are under heavy pressure to come up with more top-class commercial office space in Mexico City, leading real-estate brokers say. And demand is also strong for quality retail and industrial space in the huge Mexican capital and its environs, they add.
"Only about a couple of years back the vacancy rate for triple A offices was about 18-20 percent," Víctor Lachica, president and CEO of Cushman & Wakefield México, told Latin Business Chronicle. "Now thats down to about 6-7 percent and falling."
Top-quality office space now rents for about $22 per square meter, according to a Cushman & Wakefield study, while the average for all grades is $18.20. Much of the shortage of top-quality space has arisen, says Lachica, as companies have moved from older, poorly equipped offices attracted by the relatively low price differential.
The net result, says Pedro Azcué, president and CEO of Jones Lang LaSalle in Mexico, is that "there just arent any big spaces left." Companies like the Spanish-owned bank BBVA-Bancomer that are looking for new headquarters....