For institutional fund strategies, Paseo de la Reforma carries the strongest investor flag in Mexico City, with prime yields around 7.4%.

  • Trophy submarket (Paseo de la Reforma) carries the strongest investor flag.
  • Prime yield: 7.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Mexico City office fund strategy and flag

For institutional fund strategies, Paseo de la Reforma carries the strongest investor flag in Mexico City, with prime yields around 7.4%.

TL;DR

  • Trophy submarket (Paseo de la Reforma) carries the strongest investor flag.
  • Prime yield: 7.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Mexico City, that's Paseo de la Reforma and assets like Torre Reforma, Torre Mayor.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityMexico City
countryMexico
regionAmericas
classARentLocal580 MXN/sqft/yr
classARentUsd$30/sqft/yr
vacancy22.6%
typicalLeaseYears5
typicalRentFreeMonths6
submarkets5
primeYieldPct7.4%
primeYield7.4%
trophyAnchorPaseo de la Reforma

Frequently asked questions

Where do core funds buy in Mexico City?
Trophy submarket — Paseo de la Reforma — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

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