The great economic and commercial activity that takes place in Mexico City marks an important constant dynamism in the rental and occupancy of work spaces. It is important to clarify that, despite the coronavirus contingency, there has been no relevant damage to employment and investment indicators in the office market (1).
At the end of 1Q2020, the total corporate inventory in Mexico City was 10 million 173 thousand 820m2, of which nearly one and a half millionm2(13.8%) are still available (1).
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While it sounds like there are plenty of options, you should take into account your budget and desired location, as well as the industry you are in, to know which is the best area. For example, one of the major sectors for this year is e-commerce, which is showing high demand (2).
Offices for rent: objectives, characteristics and benefits
The office spaces allow to perform work tasks for projects, companies, businesses, institutions or startups.
Even in this day and age, where virtuality facilitates many processes (video calls, sending documents, project synchronization, remote work, e-government, electronic banking or home office), the main objectives of the office still stand out for:
- Provide a safe and comfortable space, where activities are centralized around specific projects and objectives.
- Create identity and cohesion among employees, based on the place where they meet and the dynamics that accompany them.
- To have a fixed place for customer service (direct and personalized communication), which gives an image of seriousness and trust.
- Make physical presence in the area relevant to the project, in addition to creating alliances and contacts. Often, depending on this and the budget, the rental area is chosen.
Depending on the sector in which you work, you will need to have certain features, such as specific equipment and furniture, but the basics in offices include WiFi, telephone, workstations, water, electricity, gas (if there is a kitchen or dining area), restrooms and sometimes parking.
In certain cases, coffee, photocopies, international calls, soundproof area for video calls, reception staff, mail handling, administrative assistance, customized space design, window views or more enclosed spaces, meeting rooms, access to the directory and industry events may be available at an extra cost, business loungeThe services provided include: cleaning and maintenance, access to printers, scanner and photocopier, among others (3).
If you are interested in industrial wineries, you can find more information here:
“Industrial warehouses: characteristics, areas and recommendations”.
Classification of offices
There is an international categorization to divide offices and buildings according to the characteristics they meet. This information will help you to know what type of site you require and what amenities it provides.
Class A offices for rent
Buildings and offices of this type are a maximum of 5 years old. Its materials and finishes are of high quality, comply with a modern architecture, in addition to a privileged location and exclusivity.
They are professionally managed, with ventilation, lighting, access control, parking lots, elevators, cafeteria, lobby and ATM (4).
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Normally, these types of buildings are exclusive to a single owner company or project and are not rented to just anyone, in order to maintain control of the site. Monthly rental prices are usually higher than the average in the area (4).
Class B offices for rent
This classification includes buildings that are less than 10 years old, relatively recent, but do not occupy a location that is considered prime (even if it used to be).
Their prices are in line with the average for the area, they have an average management for the building, the condition of the place is very good, as well as its finishes (4).
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In the case of the parking lot, it is of good quality and maintains a certain order, but it is not sufficient for the growth of the companies or businesses that inhabit it. These buildings have security, lobby and standard requirements, but as there are more of this type, there is greater competition, and therefore less availability (4).
Class C offices for rent
They are more than 25 years old (even 40) and are located in conglomerate or central areas that, although they may be very accessible to the general public, are not very exclusive (4). This can be important depending on the type of customer you want to reach.
Its architecture and distribution is ancient. Sometimes it does not comply with current technological standards, nor does it have an efficient site administration.
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It is priced below commercial figures in the area. Parking is a problem, since it is a very busy and inhabited area, there is no space to park the car or you have to park it in a place outside the office, which generates logistical problems and various expenses (4).
Finally, take into account that this division is made for practical purposes, because in many occasions in the same conglomerate or set of offices there are class A, B and C options, with different functions, dynamics and employee profiles, so it is not possible to categorize so easily.
Office areas for rent CDMX
On the Lamudi portal alone, there are more than 8 thousand offices available for rent in the CDMX. The supply is concentrated in 10 municipalities and in more than 70 neighborhoods in Azcapotzalco, Gustavo A. Madero, Cuauhtémoc, Miguel Hidalgo, Iztapalapa, Coyoacán, Tlalpan, Álvaro Obregón, Cuajimalpa de Morelos and Benito Juárez (5).
In terms of square meters under development, more than 500 thousand square meters remain under construction (1). In terms of market statistics, there are five areas that stand out for their inventory: Insurgentes, with more than 2 million 200 thousand square meters, Polanco with 1 million 749 thousand square meters, Reforma and Santa Fe with areas of around 1 million 350 thousand square meters, and the northern zone with more than 820 thousand square meters (1).
In these five zones, the overall availability rate (both for class A, B and C buildings) is as follows: Norte (33.7%), Santa Fe (21%), Polanco (12.7%), Reforma (12.4%) and Insurgentes (10%) (1). In that sense, we recommend you to evaluate the different availability options to make a balance between the benefit of locating in the area you want and the payment of the rent.
If you are interested in leasing in industrial and commercial areas in the north (Vallejo), downtown (such as Colonia Juarez) or west (Polanco), you will find Vallejo Properties options available to you. Contact us for more details.
North offices for rent
Vallejo
One of the most important industrial zones in Mexico City is Vallejo. In this area we found 11 offices for rent, at least in the part corresponding to the municipality of Gustavo A. Madero, with a variation in the cost per square meter that gives an approximate monthly rental price of 14,500 pesos ( 6).
In Vallejo Properties we have 5 office complexes: Ceva, Corona, Malta, Hobanet and Stanhome. Check our locations in detail.
Offices for rent Centro
Juarez
It goes without saying that this location is privileged as it is in an area with a lot of commercial and entertainment activity, with important connections to several roads. The rental trend in this area yields an average of 35 thousand pesos per month for rent, with an approximate price of 349 pesos per square meter. The Lamudi portal lists 575 offices available for rent in the area (7).
In Vallejo Properties we have two locations in this area: Rio Lerma and Niza.
See more details about these complexes.
Offices for rent Poniente
Polanco
This area is one of the most coveted in terms of residential and commercial income, due to the level of privilege it enjoys. Currently, in this area the price per square meter is 421 pesos, with average rents of 55,500 per month (8). On the Lamudi portal we found 864 offices for rent (8).
In Vallejo Properties we also have an office complex located in Horacio. If you want to know more about this building, please visit our website.
If you want to know more about commercial leasing, we suggest you review this text:
“Rent of commercial premises in CDMX: costs and benefits”.
CDMX office rental prices
In some spaces, the rental charge may vary per day, week, month or year (3). It is very important that you take this point into account in order to make the necessary calculations with the minimum rental period required.
It is also common for some offices to ask you to give notice of cancellation of your contract with a certain amount of time in advance to avoid monetary penalties. Remember that these types of provisions must be stipulated in the contract.
For 1Q2020, the general monthly rental price per m2 in the CDMX was US$21.85 (MXN485) and US$23.03 for Class A corporates (MXN511) (1).
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Although it is very important to consider where you want to locate and the availability of the area, bear in mind that it is suggested that a maximum of 40% of your company’s or project’s income be allocated to office rental payments (9).
Recommendations for office rental
In all cases, the rental or purchase of a property should be made with sufficient time to plan and make all the necessary preparations. In the case of an office, it is important to find a suitable and equipped place for your business or project . That is why we give you the following basic recommendations when choosing the place (8):
- Location. This point is strategic, especially because it must be close to the public with whom you want to connect, to the industrial or commercial area in which you want to be located, or with the collaborators who will be working in the company. In addition, you should take into account that access by public transportation and connection to main avenues will allow you to easily get to and from the area. It is also important to be close to places to eat, cafes, stores or shopping centers. Remember to check that the office is accredited and has all the necessary permits, so that you will not have any problems. If you have any questions, please contact us.
- Facilities. A very important part is to know what you need for your office: what kind of spaces, amenities, minimum or additional services, according to the line of business and the activities you need to carry out. For example, the basics are electricity, internet, water, telephone, air conditioning, parking and security, as well as meeting space. You also have to check the age and condition of the site to verify its actual condition. Keep in mind that if you are expecting to expand in the short or medium term, you may need a place where it is possible to expand in meters.
- Cost. Depending on the location and the type of facilities you require, the rental price may be higher. Consider the area in which you want to locate to evaluate the average price per square meter, as this is an important reference for your or the company’s budget. Also verify in the contract all the specifications that are included in the contract so as not to omit or incur in any error with the amenities or characteristics of the place.
- Contract . As in all cases of residential, commercial or industrial rental or sale, we always recommend that all clauses be in writing and clear enough for both parties. Keep your copy in a safe and handy place. Remember that if there is any damage to the site, this should be marked in the contract with photographic or video evidence, so that both parties are aware of the state of reception of the site. If the office is furnished, we recommend that the furniture be indicated, with text and photos, in the contract, to differentiate it from the furniture you will bring.
- Moving. In many occasions, this expense is not previously considered until you are about to occupy the place. For this reason, we recommend you to integrate this point from now on, to know the costs of moving your furniture, equipment or tools, whether you have it in an office or a warehouse. wineryThe same applies if it is in another office or if you are just going to acquire it (take the measurements regarding the space and the color harmony). If you get a furnished place, it will allow you to save costs, but you will have to verify if it adapts to the style of your business or the image you want to transmit.
If you are interested in knowing about warehouses for rent, we suggest you to read:
“Warehouses for rent in CDMX: characteristics and recommendations.”
Conclusions
Physical offices still play a very important role in the establishment or expansion of a company, because they allow you to link business opportunities, image, context, security and space for your collaborators and clients. At Vallejo Properties we want to accompany you to take that step and follow the route of commercial expansion that you require.
Also take into account the new digital routes to grow in your industry or corporate sector. You can do this by creating a digital strategy with the help of a digital marketing agency.
digital marketing agency
specialized in your field.
In addition, he believes that after the return to the new normalcy, it will be several changes will take place in the work dynamics: you will have to look for smaller and more flexible offices to employ your work team, in a sort of coexistence with the home office, according to your new needs and official regulations. Therefore, contact us and let’s find the ideal office for your business.
References
- Fernanda Hernandez.
CDMX office market closes 1Q2020 with -9,532 m
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Urban Center, 2020. Accessed May 26, 2020. - Real Estate Press. Mexico: What will the 2020 office market look like? Real Estate Press, 2020. Accessed May 26, 2020.
- Regus. Offices for rent. Regus, n.d. Accessed May 27, 2020.
- Carlos Arcos. Do you know the classification of offices and buildings? Your Real Estate in Veracruz, 2016. Accessed May 27, 2020.
- Lamudi. Offices for rent in Distrito Federal. Lamudi, s / f. Accessed May 27, 2020.
- Lamudi. Offices for rent in Vallejo. Lamudi, s / f. Accessed May 28, 2020.
- Lamudi. Offices for rent in Juárez. Lamudi, s / f. Accessed May 28, 2020.
- Lamudi. Offices for rent in Polanco. Lamudi, s / f. Accessed May 28, 2020.
- High Level. These 7 neighborhoods have the cheapest offices in the CDMX. High Level, 2017. Accessed May 28, 2020.
