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Development offices A and A Plus endure crisis due to covid-19

MEXICO CITY. Despite the contraction in the office rental market, which last June represented an unemployment rate of 23.68 percent in type A and A Plus, experts point out the strength of these real estate developments.

The demand is frozen, although the advantage of the A Plus office buildings is that they belong to large capitals, it is not a family investment; They are large corporations and approximately 50 percent of these buildings are in the Fibras’ portfolios, which gives them a very important financial support, ”said Horacio Urbano, founding partner and director of Centro Urbano.

Fibras are infrastructure and real estate trusts that are listed on the Mexican Stock Exchange and with their resources it is possible to build buildings, in this case for offices.

Obviously, large real estate companies are affected by not being renting, but they can perfectly endure non-occupation thanks to Fibras ”, he added.

Gene Towle, managing partner of Softec, a real estate consulting company, points out two factors that will contribute to increasing the demand for offices for rent: each year 240 thousand people join the labor market “and all jobs, without exception, use real estate space to develop”.

Yesterday Excelsior published that the analyzes of Towle and María José Fernández, general director of the Association of Real Estate Developers (ADI), show fewer square meters occupied by offices.

This last organization indicates an increase in unemployment of 7.46 percent from June 2020 to June 2021, while Softec registers 5.6 percent more empty offices in categories A and A Plus.

UNDERPRIVILEGED

The readjustment in the market derived from the pandemic, its economic effects and the home office have hit the offices type B (21 to 25 years old) and C (more than 25 years old) with more force.

Jorge Barrenechea, director of Orell Bienes Raíces, is an intermediary in the rental of offices in various municipalities, including Azcapotzalco and Gustavo A Madero.

There the office business came to a complete halt; 70 percent of the offices were no longer rented; We had to adjust the rent for 20 percent of our clients and only 10 percent continued to pay the same rent as before, “he told Excelsior.

To that 20 percent, “we reduced the rent by 50 percent (from May to July 2020) and then adjustments were made on a case-by-case basis: to the one who paid 25 thousand, the property owner lowered the rent to 20 thousand; others who paid 13 thousand were adjusted to 10 thousand and so in each case ”.

In Azcapotzalco, of 12 offices for rent, only 9 have been rented, “and most of our clients, the office owners, live on their income, they depend on them to pay their children’s tuition, pay for food and it has taken a lot of work to survive.

We throwing all the desire in the world, but people are not even looking for offices to rent; they see that working from home is much better ”, he added.

Most of the offices that you rent in Azcapotzalco are in the center, they are old buildings, which are not allowed to make modifications.

In Gustavo A. Madero they rent three small office buildings in the Lindavista neighborhood, in buildings 30 years old.

Our clients also depend on their income to cover their expenses; perhaps not to the extent of those in Azcapotzalco, but they do depend on it ”, and at the moment none of the three properties have been rented.

That is why they are looking for other alternatives: “we are offering them as tattoo studios, which are very fashionable; such as dental offices; as laboratories, and as schools of styling. They are their own businesses that need their space ”.

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