Real Estate: Office buildings market in Mérida, Yucatan

The “Class A” office market in Mérida, Yucatan is concentrated in 5 main submarkets:

–Comprises all Prol. Montejo which is considered the Main Avenue of Mérida and which crosses the city from north to south.

-Concentrates banks, a wide variety of amenities of various lines of business in individual format such as restaurants and services in general.

–There are several shopping centers such as La Gran Plaza, Galerías and The Harbor.

–We find the Siglo XXI congress center and business class hotels such as Fiesta Inn, Holiday Inn, Hampton Inn by Hilton, Ibis Styles, Extended suites, among others.

-Most of this sub-market has limited spaces due to the lack of land, however the northern area of ​​Montejo has availability for new projects.

Description of the Montejo Sub Market

Garcia Lavín Sub Market

–It extends along Av. García Lavín, the second most important avenue in the city.

–Its central location within the urban area of ​​this sub-market facilitates the transfer to any point of interest.

–Contracts banks, insurers, brokerage houses and a wide variety of amenities of various lines of business in individual format such as restaurants and services in general.

–In this sub market is the City Center shopping center, Plaza San Angelo and will soon have 2 new commercial spaces.

–This submarket is booming since it is an area with high traffic flow and where a large part of social activities is concentrated.

Description of the García Lavín Sub Market

Cabo Norte Sub Market

–It is located along the avenue that gives continuity to García Lavín, accessing when crossing the peripheral and arriving at Temozón Norte, the subdivision of the moment, Xcanatún, La Ceiba, Conkal and Cholul.

-Area with a high socioeconomic level within the ZMG and a vertical residential area boom. It has high availability of land for new projects.

–Public transport limited by its distance from the city center.

–Within this sub-market is the “la isla” shopping center built by the Gicsa group and the new El Faro Hospital. Several hospital projects are in planning.

Description of the Cabo Norte Sub Market

Altabrisa Sub Market

-It covers Republica de Corea avenue that extends to Correa Racho, Yucatán avenue and streets 35 and 7 that have access to the peripheral.

–It is surrounded by a variety of amenities such as restaurants, bars, commercial stores and supermarkets.

–This sub-market is located within a residential area which is growing in vertical housing.

–It has the Star Medica Hospital, the High Specialty Regional Hospital and several medical offices.

-Public transport: maintains a wide network of bus and taxi routes.

Description of the Altabrisa Sub Market

South Sub Market

–It is the sub market that is located to the south of the city and covers the avenues Jacinto Canek and Juan Pablo II. It is located near the airport.

–It has wide accessibility due to the number of avenues that connect the center of the city with the peripheral ring.

– There is availability of land for the construction of future corporate and commercial projects.

–It is the sub market with the lowest absorption, since it offers a wide availability.

Description of the South Sub

Total Inventory of Completed Buildings

59,036 m² of the total buildings completed in the Mérida office market, distributed A.

TOTAL AREA AND AVAILABLE IN M2 TOTAL OF FINISHED BUILDINGS

Total Inventory of Buildings under Construction

22,202 m² of total inventory of buildings under construction in the Mérida office market, distributed in 4 class A buildings

TOTAL AREA AND AVAILABILITY IN M2 BUILDINGS UNDER CONSTRUCTION

Total Inventory of Buildings in Planning

49,356 m² of total inventory in buildings under planning identified by JLL in the Mérida office market, distributed in 5 class A buildings

Inventory of Availability in Finished Buildings

9,323m² of available space in finished buildings, distributed in 12 class A buildings.

Availability by Sub Market

Average Rent

Q2 2020 Transactions

2nd T 20 Real Estate Clock of the Corporate Market

Conclusions Q2 2020

The largest surface area of ​​class A finished buildings in Mérida is concentrated in the García Lavín sub-market with 38% of the market share, counting said sub-market with the number of 5 finished buildings.

–García Lavín is the sub-market with the largest inventory of buildings in the construction stage with a (56%) participation in this area, with 2 projects that will be delivered in the third quarter of 2020 and in the first quarter of 2021, followed for the Altabrisa (26%) and the South (18%).

–Of the total number of buildings in the planning stage, the García Lavín sub-market has 1 project, Montejo has 1 project and North Cape has 3 projects in planning.

Based on the corporate market real estate clock, it can be mentioned that the South submarket is depressed with 96% availability of all its inventory which has led to a decrease in the rental price, the booming submarkets are Montejo and García Lavín while Altabrisa and North Cape are on the rise offering new corporate projects.

-The percentage of availability at the moment is 16%, the García Lavín and Montejo sub markets are the sub markets with the highest occupancy and demand.

Pre-leasing in buildings under construction remains active with 17,173.69 m² pre-leased in all submarkets.

–We consider that the new supply of buildings under construction may generate a gradual decline in prices in the next two years, however the new rents will have as determining variables the price, the quality of their products and the type of tenant.

  • Due to the situation our country is going through, some of the corporate buildings were affected since they had a slight increase in their availability compared to the previous study.

–According to the previous study, inventory availability has decreased, this again shows that Mérida is a growing city even with the current situation and continues to be attractive for national and international companies.

Source: Inmobiliare

The Yucatan Post