Mexico City

Mexico City is an attractive market for low-specification fit-outs (MXN$30,445 per m2) but after a boom in new-build office space a decade ago, the city is once again facing a shortage of space, especially for top-grade stock. Premium fit outs are often limited to smaller floor plans, and the squeezed availability is feeding into higher relative costs, which now average at MXN$45,653 per m2. Despite these low levels of available space, our experience is that most clients in Mexico City are still looking to relocate within the city, choosing to pay higher rates now for new, quality space.

Fit-out trends in this market tend to be split between the distinct local market – typically made up of law firms and consultancies – and the global one, including clients that might have moved to Mexico City as part of the nearshoring trend of the past few years. Cost is a top priority for local businesses, while international occupiers tend to demand more in terms of amenities to attract top talent.

In part due to rising overall construction costs and the long-term effects of Covid-19 on worldwide supply chains, global companies are increasingly beginning to look at local options for fit-out components such as audio-visual and IT elements. In a turbulent geopolitical landscape and feeling pressure to deliver projects on schedule as business needs evolve, this can improve the likelihood of receiving goods on time. Mexico City is somewhat insulated from the USA’s tariff regime due to the United States-Mexico-Canada Agreement (USMCA), but reflecting trends across the wider region, there are often long lead times on non-compliant products which can delay delivery.