Mexico City’s Office Market Reaches Post-Pandemic Peak

The office market in Mexico City has reached its strongest performance since the pandemic, with net absorption climbing to 175,000m² by 3Q25, an 84% increase year-over-year, according to CBRE México’s Marketview Offices Report. The rebound is fueled by a renewed corporate presence and the consolidation of the hybrid work model, which continues to shape workplace demand and design across the capital.

CBRE reports that 78% of corporate users now attend offices three or more days per week, reflecting the maturity of hybrid schemes and a growing focus on flexible, collaborative spaces that enhance productivity and well-being.

By the end of 3Q25, Mexico City’s Class A and A+ corporate office inventory totaled 7.4 million m², with 33,000m² of new space added mainly in the Polanco and Reforma corridors, a 0.6% annual increase. Vacancy rates fell to 18.6%, down 2.9% from the previous year, while the quarterly net absorption reached 15,000m², bringing the annual total to 175,000m².

The City’s Business District (CBD), which includes Polanco, Insurgentes, and Lomas Palmas, captured 59% of total absorption, with Polanco alone accounting for 42%. Meanwhile, gross absorption, which includes new leases, renewals, and relocations, reached 390,000m² during the first nine months of the year, showing sustained tenant activity and confidence.

Economic and Labor Context

Mexico’s macroeconomic fundamentals continue to underpin corporate real estate performance. Foreign Direct Investment (FDI) reached US$34.3 billion in the first half of 2025, a 10% year-over-year increase, setting a fifth consecutive annual record, reports CBRE. Mexico City captured 56% of national inflows (US$19.3 billion), primarily in manufacturing (36%) and financial services (27%).

The city’s formal employment base also grew to 3.6 million workers by August 2025, up 1% annually, led by business services (43%) and commerce (22%), despite a 3.96% unemployment rate midyear.

The Office Occupier Sentiment Survey 2025 revealed that nearly eight in 10 companies in the capital now operate under in-person models of three or more days per week. Moreover, 87% plan to expand their office footprint in the next three years, driven by digital transformation and the need for dynamic collaboration spaces.

CBRE notes that half of the available inventory in the market is offered as fitted-out, plug and play, or subleased spaces, a trend most visible in the CBD, where such formats represent 51% of supply, facilitating rapid occupancy and flexible lease terms.

Mexico City has seven active office projects totaling 246,000m² under construction, 30% of which are already pre-leased. About 60% of this new development is concentrated in the CBD. By year-end 2025, an additional 143,000m² of office space is expected to enter the market, particularly in the Insurgentes and Polanco corridors, signaling continued investor confidence but also potential adjustments in vacancy levels.

Sector Leadership and Trends

Average transaction sizes in Class A and A+ buildings surpassed 1,000m² in 3Q25, led by the technology and it sector (35%), followed by transport and logistics (13%) and media and telecommunications (12%). According to CBRE’s Tech Talent report, Mexico City now leads Latin America in tech employment, with 320,000 jobs in the sector.

The CBD captured 71% of total leasing transactions, underscoring its role as the strategic hub for multinational corporations and fast-growing industries.