Below is a brief Q4 2017 summary of the main indicators in relevant real estate markets in Mexico, according to data from Solili.

Mexico City

Office

At the close of the quarter, total leasing activity reached 366,000 m2; Class A leasing activity totaled 217,000 m2 with 44% being pre-leases in buildings currently under construction
The Class A availability rate fell by 50 basis points to 13.5% due to strong leasing activity. The overall Class A asking rate remained stable, with some reduction in select submarkets.

The construction pipeline increased during the quarter with 3 new projects breaking ground.

Industrial

In the industrial market, the most relevant event was that the availability rate had a decrease of two percentage points, compared to the previous quarter.

Also, during the quarter only one industrial building began construction, located in the Tepotzotlán corridor and a total of 75 thousand square meters were delivered, of which about 80% entered occupied.

Net absorption registered a total of 254 thousand square meters at the end of the quarter.

Guadalajara

Office

In the Guadalajara office market, leasing activity continued its positive rhythm and ended the quarter with an increase of 10% compared to the previous quarter.

The average asking rate and the availability rate remained at the same levels as in Q3 2017.

During this quarter the construction of a one new building began while two new buildings were delivered during the quarter, adding almost 30 thousand square meters to inventory.

Industrial

During the quarter, three new industrial buildings began construction, totaling 48,000 m².Despite the incorporation of 46,000 m² of new supply to the inventory, availability continued its downward trend with 7,000 m² less than the previous quarter. Average asking prices remained stable and leasing activity was 60% less than reported in Q3 2017.

Tijuana

Office

During Q4 2017, only the Zona Rio corridor reported leasing activity.

Construction remained at the same levels, as well as prices. On the other hand, the availability rate decreased by one percentage point.

Industrial

During Q4 2017, more than 700,000 square feet of new space was delivered to the market. Despite the new supply delivering to the market, the availability rate remained stable. Leasing activity and prices also registered similar levels to the previous quarter. Just one new construction project broke ground during the quarter.

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