Mexico City - Class A Office Market Overview June 2013
Mexico Office Market Most important buildings are concentrated in ten sub-markets: Reforma 10 Polanco Lomas 7 1 5 6 3 4 8 2 Lomas Altas Bosques Santa Fe Interlomas 9 1 2 3 4 S a n ta F e R e f o r ma L omas P olan c o 7 8 9 I n t e r lomas Insu r ge n t es P e r ifé r i c o Sur 10 N o r t e Insurgentes Perisur 5 6 B osques de las L omas L omas A ltas Norte
Total Stock Distribution Total Stock in Finished Buildings: 4,497,137 square meters Total Stock in Under Construction Buildings: 964,483 square meters Total Stock in projects that are Planned (and have not broken ground): 668,040 square meters Total Stock in projects that are Planned and is uncertain when they will break ground: 401,227 square meters Reforma Polanco Lomas Lomas Altas Bosques Santa Fe Interlomas Insurgentes Perisur Norte
Supply Distribution in finished buildings Total Square Meters: 531,144 Reforma Polanco Lomas Lomas Altas Bosques Santa Fe Interlomas Insurgentes Perisur Norte
Demand Distribution * It includes all the activity registered during the period Reforma Polanco Lomas Lomas Altas Bosques Santa Fe Interlomas Insurgentes Perisur Norte Closed Square Meters: 361,623 *
Net Demand Distribution * It not include renegotiations, subleases, investments and movements of Class A to Class A Buildings Closed Square Meters: 152,883 * Reforma Polanco Lomas Lomas Altas Bosques Santa Fe Interlomas Insurgentes Perisur Norte
Square Meters (000 s) Buildings Under Construction / Number of Buildings 700 600 500 400 300 200 100 0 136 601 135 441 21 9 149 149 2013 2014* 2015 5 Sq. M. (000's) Svl.Sq. M. (000's) Number of Buildings * Built-to Suit BBVA Bancomer
Square Meters (000 s) Confirmed Planned Buildings / Number of Buildings 250 200 150 165 163 194 194 134 134 100 50 6 6 5 0 2014 2015 2016 Sq. M. (000's) Avl. Sq. M. (000's) Number of Buildings
Square Meters (000 s) Planned Buildings / Number of Buildings 300 227 227 275 275 200 100 0 11 102 102 3 2014 2015 2016 2 Sq. M. (000's) Avl. Sq. M. (000's) Number of Buildings
Gran Total Projected Delivery Date and RSM of Currently Under Construction buildings plus confirmed planned buildings and planned buildings Year Number of Buildings Total Square Meters Total Available Square Meters 2013 9 136,394 135,003 2014 30 789,844 627,294 2015 22 619,642 619,642 2016 8 314,663 314,663 2017 3 101,336 101,336 2018 2 71,871 71,871 Total 74 2,033,750 1,869,809
Rentable Square Meters Supply and Demand by Year 600 500 400 300 200 100 0 12% 19% 17% 11% 12% 12% 11% 7% 6% 5% 9% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 20% 15% 10% 5% 0% Supply Demand Vacancy Rate To June 2013
Vacancy Rate by Sub Market Finished Office Space Vacancy Rate by Sub Market as of June 2013 25% 20% 15% 10% 19% 9% 20% 7% 15% 17% 10% 14% 16% 5% 2% 0% Reforma Polan co Lomas Lomas Altas Bosques Santa Fe Inte rlomas Insurgentes Perisur Norte* * Norte area includes Tecnoparque Buildings Average: 12%
Office Market Number of Buildings Sub market Total Stock Avl. SQM in Finished Buildings Avl. SQM in Buildings Under Construction Vacancy Rate in Finished Buildings 27 Reforma 549,619 48 Polanco 661,485 77 Lomas 560,308 80 Santa Fe 1,187,186 22 Bosques 320,293 7 Lomas Altas 84,411 10 Interlomas 70,975 31 Norte 154,749 42 Perisur 389,462 52 Insurgentes 518,649 101,975 178,340 16,177 148,433 47,694 64,440 180,883 57,659 22,835-16,702-12,040 6,429 25,318 84,930 53,377 28,500 54,143 234,211 19% 2% 9% 15% 7% 20% 17% 16% 14% 10% 396 Total 4,497,137 531,144 802,942 12%
USD/SM Rental Rates Trend - Average rents (rentable square meter / month) $50 $40 Class "A" Office Buildings $30 $20 $10 $24 $24 $22 $21 $21 $21 $23 $24 $28 $27 $26 $26 $25 $27 $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Asking prices not include maintenance fee
Average Rent by Sub-Market (*) Sub Market Class A Rent per SM Short Term Trend Reforma USD $27.00 - $35.00 Stable Polanco USD $24.00 - $35.00 Stable Lomas de Chapultepec USD $25.00 - $34.00 Stable Lomas Altas USD $20.00 - $24.00 Stable Bosques de las Lomas USD $22.00 - $28.00 Stable Santa Fe USD $17.00 - $23.00 Stable Interlomas USD $19.00 - $22.00 Stable Insurgentes USD $20.00 - $25.00 Stable Perisur USD $21.00 - $24.00 Stable Norte USD $18.00 - $25.00 Stable to Mod. Inc. * Operating expenses not included
Sale Price by Sub Market Sub Market Sale Price per Square Meter Reforma USD $5,500.00 - $6,000.00 Polanco USD $5,500.00 - $6,200.00 Lomas de Chapultepec USD $5,500.00 - $6,200.00 Lomas Altas USD $3,000.00 - $3,300.00 Bosques de las Lomas USD $2,600.00 - $3,500.00 Santa Fe USD $2,900.00 - $3,200.00 Interlomas USD $2,300.00 - $3,000.00 Insurgentes USD $3,700.00 - $4,000.00 Perisur USD $3,000.00 - $3,500.00 North* - *Currently in North area there is not spaces for sale and there are not sale transactions registered
Jones Lang LaSalle Research LaSalle Partners, S de RL de CV Monte Pelvoux 111 5 Lomas de Chapultepec México DF 11000 TEL 5202-7190 fax 5202-4377