Monterrey, NL. While the Nuevo León’s commercial real estate sector is being reactivated due to the increase in capacity and new investments, it is expected that the office market will take three or four years to return to pre-pandemic levels, due to the accumulation of existing and new supply, he told The Economist, Sergio Resendez, CEO of Colliers International in Monterrey.
“I believe that the commercial sector is rebounding due to the increase in capacity for restaurants and shopping centers, there has even been new investment, for example, in Galerías Monterrey, there is an expansion project, and a new Food Court has already opened. There is good demand in this regard, “he said.
On the other hand, commercial brands have consolidation plans, that is, they stopped investment, but they are relocating where they believe it is more profitable to open their stores, and new brands and franchises are also arriving.
At the end of the third quarter, commercial inventory in the Monterrey Metropolitan Area closed with 4.4 million square meters, distributed in more than 570 properties in the different submarkets, indicates the Colliers International Retail Report in Monterrey.
There are 46 commercial projects under construction monitored, with an area of more than 234,000 square meters, however, 72% are mixed-use projects, being the drivers of commercial growth.
Slow recovery
At office marketBefore the pandemic, there was already a problem of oversupply, “because they are projects that have taken a long time since their conceptualization, due to permitting and location issues (…) unfortunately the pandemic increased the availability that there is,” lamented the executive.
“This sector will take a little while to recover, we estimate that it will take between three or four years to return to the pre-pandemic numbers, especially due to the supply that already existed and the new one that is being added to the market,” he anticipated Sergio Resendez.
During the third quarter, it closed with a net absorption (difference between occupied and unoccupied square meters) of 9,000 square meters, according to data from Colliers International.
The inventory of offices in the Monterrey Metropolitan Area had an increase of 2,700 square meters during the third quarter of the year, closing with 1.7 million square meters distributed in 220 properties, indicates the Report from Colliers International.
At the end of the third quarter, 411,000 square meters of corporate spaces are available, that is, 23% of the built inventory.
“The demand has behaved more or less stable”, because support companies have arrived for the industrial market, for example, accounting firms, lawyers, finance offices and there is a strong demand for call centers, this is due to the fact that companies are getting leaner and are concentrating on the strong part of their businesses, explained the manager.
However, there are more and more square meters of offices available and they are not able to absorb the square meters built, which will imply a drop in prices, given the competition that exists, he anticipated.
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Reference-www.eleconomista.com.mx