Tech companies are transforming Mexico City's office market. They prefer flexible, adaptable spaces with intelligent systems that foster innovation and collaboration. This has increased the demand for furnished offices and coworking spaces in central areas, which are well-connected and feature amenities designed to boost employee productivity and well-being.

According to data from SiiLA, the tech sector occupies more than 320,000 square meters of gross leasable area (GLA) in Mexico City, representing 4% of the market. While their overall market share is moderate, the sector has grown significantly over the last three years.

Between the second quarter of 2021 and 2024, the GLA occupied by the tech sector grew by 6%, making it the second-fastest-growing sector, just behind the financial industry. Additionally, in the first half of 2024, tech companies absorbed nearly 17,000 square meters, accounting for 13% of the total absorption in the capital, ranking as the second-largest sector for absorption after finance.

Companies like Uber, IBM, Tech Mahindra, Cisco Systems, and Hewlett-Packard are leading the tech sector's office occupancy in the Valley of Mexico metropolitan area. Each occupies between 11,500 and 17,000 square meters of GLA. These spaces are typically divided into suites or units ranging from 3,000 to 4,000 square meters, although the tech sector's average office size tends to be around 1,100 square meters.

Mexico as a Strategic Hub for the Tech Sector

The global tech boom has led companies to seek strategic locations that offer connectivity, specialized talent, and competitive costs. In this context, Mexico has emerged as a critical destination for companies looking to expand their operations.

Mexico's proximity to the United States enables close ties to the world's largest tech market, while trade agreements like USMCA provide tariff benefits and a regional integration framework that supports the flow of investments and services. Additionally, Mexico is a strategic bridge between North and Latin America, making it a central point for regional operations.

Tax incentives and the growing infrastructure in cities like Mexico City, which offer modern spaces with advanced technology and high connectivity, are key factors attracting tech companies. These incentives and a growing tech workforce have significantly increased demand for workspaces tailored to their needs.

According to CBRE's “Scoring Tech Talent 2024” report, Mexico City has solidified its position as the top tech talent market in Latin America. With over 300,000 jobs in the sector and an 88% growth over the past five years, the city's tech sector shows promising potential for further expansion.

Other cities in the region, such as São Paulo (Brazil) and Santiago (Chile), each with fewer than 250,000 tech workers, also stand out for their specialized talent, although their growth rates (17% and 15%, respectively) are lower compared to Mexico City. São Paulo, in particular, has seen a surge in tech startups, while Santiago is positioning itself as an emerging hub for tech innovation.

The transformation of Mexico City's office market is a testament to the city's unique strengths and its role in the global tech expansion. For more information on trends in Mexico's commercial real estate market, visit SiiLA REsource or contact us at contacto@siila.com.mx.