The Importance of Transparency in Real Estate Transactions and the Information They Provide

By SiiLA

The term real estate transaction is used to describe the conditions of the operation: closing price, term, reason for the operation, among others.

When a transaction is carried out, indicators are generated with fundamental information about it, such as the type of asset (industrial, office, retail, hotel), name of the property, owner, tenant, market in which it is located, price per square meter, capitalization rate and the area sold or rented in square meters. The following table shows, as an example, how this information is displayed, which can be found in the transactions section of the platform.

This information is considered a relevant element, since it allows us to know the movements of the real estate market in Mexico and how it behaves. Monitoring the market with these metrics, together with the other information we offer in the platform, can give us an idea and show the behavior of the economy, as well as the real estate investment by region and asset in the country.

Some of the most relevant recent office rental and industrial building sales transactions that have taken place in 1Q22 in the industrial and office sectors in Mexico are: Juarez Industrial Center #18 in the Juarez Industrial market, sold by Prologis to FIBRA Prologis and Torre Virreyes (El Dorito) with the renovation of Facebook in the CDMX Office market. These transactions represent a recovery in both assets: in the industrial asset, due to the growing demand for industrial warehouses within the cities, which function as logistics spaces for companies dedicated to e-commerce; and from the office sector the incorporation of a hybrid work scheme in some CDMX submarkets such as Lomas Palmas, Periférico Sur, Polanco and Santa Fe.

Based on this information, we can conclude that, by having tools and information bases on the commercial real estate market, as well as on the country's economy, we can analyze sale or lease transactions in a more informed and secure manner.

To know the behavior of the commercial real estate market in the main markets of the country, SiiLA developed Market Analytics, a platform in the cloud that includes the Transactions section, which contains metrics such as, Sale or Lease Price, Acquired Area, Capitalization Rate, among others. Request your demo: