The pandemic redefined the use of workspaces, and while the hybrid model has gained traction, demand for high-end offices in Brazil and Mexico is recovering as companies bring employees back to the office.

In Brazil, the office market, especially in São Paulo, began stabilizing after the pandemic. Market prices returned to nearly $20 per square meter in Q2 2024, after dropping to $15 in 2020. Vacancy rates are slowly decreasing but still remain above 20%.

According to Giancarlo Nicastro, inadequate conditions for remote work in Brazilian homes, uncertainties regarding home office legislation, and employees’ adaptation to hybrid work have led many companies to invest in office spaces to engage their teams in this new scenario.

In Mexico, the corporate real estate market is behaving similarly, with a recovery in per-square-meter market value and vacancy still above 20%. According to the SiiLA CEO, factors like demand for flexible spaces, preference for short-term leases, and a focus on high-quality properties are driving the sector's recovery.

The industrial real estate market is the best-performing sector in key Latin American countries. In Brazil, the rise of e-commerce has transformed local consumption culture, leading companies to heavily invest in efficient logistics operations to better store and distribute products nationwide. In addition to e-commerce, sectors like pharmaceuticals and automotive have begun to recognize the benefits of using industrial parks for their operations, which were previously conducted in privately owned warehouses with less robust structures.

Nicastro emphasized the potential for industrial properties in Brazil, noting that 80% of the national stock is still concentrated in the Southeast, which comprises the states of São Paulo, Rio de Janeiro, Minas Gerais, and Espírito Santo.

In Mexico, the driving force behind the industrial boom has been companies seeking to relocate their supply chains closer to the U.S. Border cities like Monterrey and Tijuana have seen increased demand for industrial properties, reducing vacancy to historic lows and pushing up market prices. Automotive, manufacturing, and logistics sectors are leading this expansion, positioning Mexico as a strategic hub for nearshoring in North America.

E-commerce has transformed how people shop, but malls in Brazil and Mexico are evolving to stay relevant, becoming full-service experience centers.

In Brazil, Class B and C assets dominate the sector, representing almost 92% of the stock. Meanwhile, shopping mall vacancy rates are falling as developments invest in offering everyday solutions for consumers, combining sophisticated dining, entertainment, markets, and services with traditional retail stores.

In Mexico, the retail sector is following a similar path. The diversification of shopping mall formats reinforces players’ strategies to offer properties that function like "micro-cities," providing not only sales but also various services. Mall vacancy has decreased by 35% since the peak in 2022, and investments are high, with new developments under construction expected to be added to Mexico’s stock in the coming years.