Narayan AmmachchiCommercial property owners in Mexico City are breathing a sigh of relief as more workers return to offices, spurring demand for office space.
More than 75% of employees in the city have returned to the office, according to a CBRE study conducted in September.
Another 6% of employees are likely to return to the office by the end of June next year, according to the report.
The influx of digital nomads from the United States and land lords’ refusal to turn residences into home offices are also contributing to the boost in demand for office space, explained the firm.
In spite of that, Mexico City office rentals might not go up in the near future, as many businesses are planning to move to smaller offices in an attempt to move towards a hybrid work strategy.
In CBRE’s survey, 54% of respondents said they favor flexible work schedules for employees, adding that such a policy is inevitable to attract and retain talent.
Many commercial buildings remain unoccupied across the city, according to national press outlet Milenio. It would take ten more years for commercial buildings to see full occupancy, said Pedro Azcué, director of real estate consulting firm JLL.
The executive expressed concern, saying customers are refusing to sign long-term leases.
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