Queretaro, Qro. During the first two months of the year, Querétaro reported a gross demand of 6,500 square meters (m²) of offices, an indicator that places it as the third market with the highest demand, according to reports from the real estate platform Solili.
In parallel to the rental level reported by Querétaro, this market does not have a record of empty spaces, that is, on the contrary, there were real estate requirements.
In this period, Mexico City registered the highest demand in the country, of 56,000 m², 78% of the gross demand that was generated in January-February.
In second position, Monterrey with a demand of 12,000 m²; in third Querétaro (6,500 m²) and in fourth Guadalajara with 6,000 m².
Querétaro stands out as one of the emerging markets in the demand for corporate space, explained Solili’s Director of Market Research, Pablo López.
According to the specialist, the entity has had a stable behavior; coupled with the fact that the oversupply faced by the zone has gone down, while the demand has remained the same.
Pre-pandemic level recovers
The Querétaro corporate market is one of those that managed to recover, in the first two months of 2022, the gross demand that it had in the same period of 2020, that is, prior to the Covid-19 pandemic.
Solili states that at the national level it was detected that the accumulated gross demand between January and February 2022 exceeds the amount registered in the same period two years ago, particularly in the real estate markets of Monterrey, Querétaro, Puebla and Mérida.
Therefore, the projections for the end of the first quarter of the year could result in significant growth.
Regarding the constructions completed in the first two months of this year, Querétaro is among the four markets that contribute between 10,000 and 20,000 m², in addition to Mexico City, Puebla and León.
However, at the end of the first two months there was no record of new projects to be built in Querétaro and in general at the national level, since only the city of Mérida registered the start of construction for a boutique project of 2,000 m² of net profitable area.
In Querétaro, it is observed that the corporate real estate market could be driven by collaborative work systems (known as coworking) and the search for alternative markets to decentralize offices in Mexico City.
Added to this scenario is the increase in the average surface area brought about by the pandemic, since before the health emergency, spaces of 10 m² per worker were required on average, a figure that rose to between 15 and 20 m².
Increase credit rating of the municipality of Colón
HR Ratings upgraded the rating from “HR A+” to “HR AA-” with a stable outlook for the municipality of Colón, state of Querétaro.
According to a report sent to the Mexican Stock Exchange, the upward revision is due to the surplus primary balance (BP) of 9.9% of total revenues (IT) registered in 2021, against 0.2% projected in the previous report.
“The growth of 19.8% in local collection and 24.4% in federal income stands out, as well as the 1.3% reduction in current spending. With this, liquidity was strengthened and allowed net debt (DN) and current liabilities (PC) to represent -5.2% and 5.7% of Free Disposal Income (ILD), against 3.3% and 17.5% expected, respectively” , recorded the report.
Likewise, it is estimated that the DN and the PC will remain at an average level of -2.2% and 6.0% of the ILD between 2022 and 2024. Additionally, according to the evaluation of environmental, social and governance factors (ESG ), there is no impact on the rating, since conditions were identified in an average range.
At the end of 2021, the direct debt amounted to 14.2 million pesos, and is made up of a long-term unsecured loan with Banobras. Derived from the good performance of the ILDs, the ND as a proportion of the ILDs decreased from 4.9% to -1.6%, while the Debt Service to ILD ratio was in line with the one projected for 2021, being 2.5 percent.
Meanwhile, “in the event that the entity is forced to finance its expenses through liabilities, the ratio of current liabilities to ILD could reach a figure higher than 9.6% average during the next few years, which would have as a result a negative effect on the grade. This could be caused in the event of a deficit greater than projected, due to the deterioration in income expectations or a growth in current spending greater than expected.