Last week, Pinterest inaugurated its new offices in Mexico City, which will serve as the headquarters of an engineering hub catering to the company's needs in Latin America. The establishment of companies like Pinterest highlights the significant growth of Mexico's information technology (IT) sector.

This growth is substantially impacting the country's economy as an increasing number of firms specializing in IT and communications services emerge. According to data from the Secretariat of Economy and the Mexican Association of the Information Technology Industry (AMITI), the number of companies in this sector has risen by around 40% over the last decade, and there are now more than 4,500 IT companies in Mexico.

Oracle Corporation, Softek, Cisco Systems, Uber, and IBM are among the prominent technology companies investing in Mexico. These companies occupy one-third of the office areas owned by IT firms, according to SiiLA Market Analytics. In contrast, IBM, Emerson, Boe Technology, Kio Networks, and Dematic occupy 40% of the square meters in industrial properties.

Several factors contribute to the increasing trend of IT companies investing in Mexico, including its strategic location, low labor costs, and a vast pool of skilled IT talent. The country also boasts abundant natural resources used to manufacture electronic devices and technology products and has an extensive technology infrastructure network, including fiberglass, nationwide.

Mexico has become an attractive spot for IT companies that wish to expand their operations in Latin America and connect with the IT market in the United States. Over the last three years, office space occupied by IT companies in Mexico increased by 20% in real terms, while industrial space occupied by these companies nearly tripled, according to SiiLA.

Corporate IT companies are mainly located in the markets of Mexico City, Guadalajara, Monterrey, and Queretaro, while most (80%) of the industrial space occupied by these companies is distributed among the markets of Tijuana, Guadalajara, Monterrey, and Mexico City.

Companies in this sector prefer high-end spaces, indicating a willingness to invest in infrastructure and advanced technology to maintain growth and competitiveness. According to Market Analytics information, 90% of the offices bought or rented by IT companies are class A+ and A, while almost 70% of the occupied industrial buildings are class A.

For more information and insights about Mexico's commercial real estate market, please visit SiiLA or contact us at contacto@siila.com.mx.