Mexico City Office Market Rises, Up 39% in 2025: CBRE

CBRE released its Mexico City Office MarketView for 4Q25, outlining a market that is recovering gradually but steadily after several years of elevated availability. By year-end, Mexico City’s Class A/A+ office inventory stood at 7.4 million m², up 0.6% year on year, as limited new deliveries kept overall supply growth contained.

During 2025, the market added 44,000m² of new Class A/A+ space, concentrated mainly in Insurgentes, Polanco, and Reforma. Development activity closed the year with 246,000m² under construction across seven active projects, with expected deliveries between 2026 and 2028.

For 2026, CBRE anticipates 213,000m² of new supply, largely concentrated in Insurgentes, Reforma, Polanco, and Lomas Palmas. The pipeline is already partially de-risked, with 40% pre-leased, and about 60% of the space under development concentrated in the CBD submarkets.

Mexico City’s vacancy rate ended 4Q25 at 17.6%, down 2.9 percentage points versus the same period of 2024. Total occupied office space reached 6.1 million m², signaling an improvement in market absorption.

Performance was strongest in the Central Business District (CBD), made up of Lomas Palmas, Polanco, and Reforma. The CBD closed 2025 with 11.7% vacancy, improving from 14.8% in 4Q24, and reached 2.7 million m² occupied. The district captured 62% of total transactions, reinforcing its position as the preferred destination for major occupiers. Polanco represented 26% of deals, strongly supported by Technology & IT activity. Reforma was the leading destination for Corporate Services, while Insurgentes absorbed a significant share of financial-sector transactions.

CBRE also notes that larger contiguous blocks of more than 9,000m² are available across Santa Fe, Polanco, Reforma, Insurgentes, Bosques, and Azcapotzalco, offering options for large occupiers looking to consolidate or relocate.

CBRE reported 72,000m² of net absorption in 4Q25, lifting full-year net absorption to 247,000m², a 39% increase compared with 2024. Gross absorption totaled 139,000 m² in the quarter and 530,000m² for the year.

According to Lyman Daniels, President, CBRE Mexico, Colombia and Central America, the recovery was particularly visible in the CBD, which concentrated more than half of annual net demand. The CBD represented 52% of net absorption for the year. On the leasing side, 29% of gross demand was driven by renewals, expansions, relocations, and subleasing, pointing to an active tenant-driven market where companies continue reshaping footprints and upgrading space.

CBRE highlights that the top 10 largest transactions in 2025 averaged more than 2,000 m², showing continued demand for sizable corporate footprints. By sector, demand was led by: financial services (20%), technology & IT (16%), and corporate services (12%)

CBRE points to stronger macro indicators underpinning office demand. By the end of 3Q25, Mexico’s FDI reached US$40.9 billion, up 14.5% year on year. Mexico City captured US$22.813 billion, a 44.6% increase versus 3Q24, accounting for 56% of national FDI. At the national level, services attracted US$21.46 billion, with financial services representing a large share of that inflow.

Labor market strength also supported the office narrative. By the end of November 2025, Mexico City registered 3.7 million IMSS-insured workers, up 4% year on year, adding 41,000 new jobs. Business and household services (42%) and commerce (23%) led job creation, while the unemployment rate held at 3.88% in 3Q25.

While offices are recovering, CBRE’s industrial data shows an even stronger pace across Mexico City’s metro area. CBRE reported record gross industrial absorption of 1.6 million m² in 2025, driven largely by pre-leases and renewals, especially in Cuautitlan-Tepotzotlan-Tultitlan (CTT) and Zumpango-AIFA, MBN reports.

The industrial Class A inventory expanded to 12.29 million m² in 2025, and vacancy closed 4Q25 at 2.7%, reflecting a market where space is often committed before delivery.

With 213,000 m² of new office deliveries expected in 2026 and a pipeline concentrated in prime corridors, Mexico City’s office market enters the year with improving demand fundamentals, but also with a meaningful wave of incoming supply.