Gross absorption of office space in Mexico City increased 33% in 2014 compared to 2013. Mexico is predicted to have 3% GDP growth in 2015 and its exports are expected to benefit from growth in the U.S. economy. In 2014, 430,000 square meters of A/A+ office space was leased, a 33% increase over 2013, driven by pre-lease agreements for new, high quality buildings. The vacancy rate ended 2014 at its lowest level in 5 years despite over 1.5 million square meters of new space added over that period.

1. MARKETVIEW
Gross absorption in 2014 (almost 430 K Sq.
M.) exceeds in 33% the 2013 figure.
Mexico City Office, Q4 2014
OUTLOOK
According to Merrill Lynch’s index of 56
emerging economies for 2015, Mexico has
positioned itself as the sixth economy with
the most solid macro-economic indicators
worldwide (China ranks first) and as the
first in Latin America. A 3% growth rate
Mexico’s GDP is predicted for 2015, even
taking into account the international
volatility in oil prices and how that affects
petroleum production in Mexico, it is also
acknowledge that Mexican exports will be
highly benefited from the U.S. economy
Q4 2014 CBRE Research © 2014 CBRE, Inc. | 1
Vacancy
8.2%
Source: CBRE Research Mexico, Q4 2014.
Average Asking Rent
$26.10 US/SQ.M./MONTH
Net Absorption
95,376 SQ.M.
Under Construction
1,356,516 SQ.M.
• At the end of 2014, asking rents for A/A+ office
space showed an annual increase of US$0.67,
driven by new offers of quality A/A+ space.
• During the year, eleven new buildings came on the
Mexico City market adding a little more than
230,000 sq. m. to inventory.
• The vacancy rate ended the year at the lowest level
of the last five years, even with the addition of a
little more than 1.5 million sq. m. in new space
during the same period.
4,140,561 sq.m. 370,373 sq.m.
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Occupied Vacancy
*Arrows indicate change from previous quarter
Figure 1: Historical Inventory, Class A

2. MARKETVIEW
Growth as well as the devaluation of the
peso vs. the. The former is an example of a
continuation of positive expectations on the
part of analysts and investors, and it's our
belief that this positive outlook will provide
backing for the expansion in the real estate
cycle in Mexico City beginning this year. At
the close of 2014, the market’s strength
could be seen in A/A+ class office space in
Mexico City with 430,000 sq. m. put under
contract, a 33% increase over the previous
year's closing. This increase in demand was
driven in large part by pre-leases
agreements in the market as a result of
offers on excellent space that met
companies' expectations. One such example
was the addition to inventory represented by
Torre Sur of the Terret Corp.
and the building at Montes Urales #445,
which were both completely pre-leased.
Some 1.3 million sq. m. were built in Mexico
City. The Reforma Avenue, Polanco and
Insurgentes are the corridors where 67% of
all buildings under construction are located.
By the same token, close to 1.4 million
sq.m. is in the planning stage, and close to
30% (450,000 sq. m.) is facing the likely
probability that construction will begin this
year.
During the first quarter of 2015, we expect
asking prices to continue to rise to levels
close to USD$27/sq.m./month due to the
addition to the market of buildings with
asking prices of USD$36 to
USD$42/sq.m./month.
Q4 2014 CBRE Research © 2014 CBRE, Inc. | 2
MEXICO CITY /OFFICE
Source: CBRE Research Mexico, Q4 2014.
0
30,000
60,000
90,000
120,000
150,000
180,000
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q1 2014 Q3 2014 Q4 2014
New Supply Gross Absorption
Figure 2: New Supply and Gross Absorption, Class A/A+

3. MARKETVIEW
Q4 2014 CBRE Research © 2014 CBRE, Inc. | 3
MEXICO CITY/OFFICE
In 2014, almost 50% of the gross absorption was leased and acquired by public services
entities (principally the government), professional services (mainly human resources and
market research consultants and advertising agencies) and the financial sector (banking
and insurance).
The submarkets with the most space leased in 2014, were Santa Fe with 21%, Lomas
Palmas with 19%, Polanco with 16%, Insurgentes with 14% and Reforma with 11%. All
totaled, these five submarkets accounted for a little more than 350,000 sq.m. in
transactions representing 82% of all operations during the year.
Figure 4: Main Transactions Q4 2014
Source: CBRE Research Mexico, Q4 2014.
* Sale Operation, Q4 2014.
Source: CBRE Research Mexico, Q4 2014.
Submarket
Inventory Vacancy Vacancy Rate Asking Rent
(Sq.m.) (Sq.m.) (%) (US$/Sq.m./month)
Azcapotzalco 105,335 2,116 2.0 25.00
Bosques 320,992 21,145 6.6 26.60
Insurgentes 544,050 46,139 8.5 25.22
Interlomas 71,165 2,275 3.2 20.39
Lomas Altas 86,464 3,468 4.0 20.30
Lomas Palmas 554,466 34,918 6.3 31.79
Periferico Sur 398,173 40,757 10.2 24.41
Perinorte 97,972 47,249 48.2 20.31
Polanco 789,244 48,248 6.1 30.65
Reforma Centro 445,702 54,298 12.2 31.86
Santa Fe 1,097,372 69,761 6.4 21.44
Total 4,510,935 370,373 8.2 26.10
Tenant/Buyer Sq.m. Submarket
Bancomer/Fibra Uno 16,384* Lomas Palmas
INNE 11,982 Insurgentes
Estafeta Mexicana 4,245 Insurgentes
Figure 3: Office Inventory Class A/A+

4. MARKETVIEW
VACANCY
At the close of the year, the vacancy rate was
8.21%, a decline of 0.4 percentage points with
respect to the previous quarter and 3.2
percentage points with respect to the same
period in 2013. Corridors that showed significant
declines in vacancies were Reforma, Polanco
and Santa Fe. In Santa Fe the rate declined by
4.1 percentage points during the year, driven by
strong demand for corporate space as we saw in
the absorption by submarkets.
AVERAGE ASKING PRICE
The asking price for the fourth quarter was
USD$26.10/sq. m./month, just two cents less
with respect to the previous quarter and 0.67
cents on the dollar more with respect to 2013.
The submarkets that registered the highest
asking prices are Reforma, Lomas Palmas and
Polanco, representing a triangular region in the
city with the greatest potential as it offers
connectivity, efficiency and quality for
businesses and as we have commented, 67% of
the space under construction is located there.
ABSORPTION
The net absorption or differential in occupied
space for this quarter compared to the previous
one reached a little more than 95,000 sq. m.
during the period, while for the year it registered
350,000 sq. m. with an increase of 75% with
respect to the close of 2013. This reflects
investors' confidence in the face of the
continuing development of new corporate
projects
Q4 2014 CBRE Research © 2014 CBRE, Inc. | 4
MEXICO CITY/OFFICE
Figure 5: Vacancy Rate
Figure 6: Average Asking Price
Source: CBRE Research, Q4 2014.
Source: CBRE Research, Q4 2014.
Figure 7: Net Absorption
Source: CBRE Research, Q4 2014.
Q4 2014 8.21%
Q4 2014 US$26.10/sq.m./month
Q4 2014 95,376 sq.m.
0
2
4
6
8
10
12
14
(%)
24
25
25
26
26
27
$
0
20
40
60
80
100
120
Sq. M.
Thousands

5. MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,
we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness.
This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior
written permission of CBRE.
CONTACTS
Yadira Torres Romero
Director
Ph. 52 84 00 00 Ext. 3014
e. yadira.romero@cbre.com
Jennifer Granados Avendaño
Coordinator
Ph. 52 84 00 00 Ext. 2028
e. Jennifer.granados@cbre.com
CBRE MEXICO OFFICE
CBRE Mexico
Montes Urales 470, floor 02
Mexico D.F, 11000
T: + 55 52 84 00 00
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or to access additional research
reports,
please visit the Global Research
Gateway at
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MEXICO CITY/OFFICE