Technology continues to be a magnet for investments in Mexico. This industry is essential for triggering the development of data centers and advanced industrial infrastructure and generating growth in the national office market. Recently, two major technological business services companies, Vertiv and Nutanix, opened offices in Mexico City, with spaces of approximately 1,600 and 2,300 square meters, respectively. These new facilities aim to establish strategic centers focused on information technologies and artificial intelligence, reflecting the growing relevance of the tech sector in the commercial real estate market.

According to data from SiiLA Market Analytics, the TAMI industry (Technology, Advertising, Media, and Information) is the fifth sector with the most office occupancy in Mexico's leading real estate markets, representing about 8% of the gross leasable area (GLA). However, most of this space (72%) is concentrated in Mexico City, the country's business epicenter. In this context, transactions recorded by SiiLA in the last three years reveal that 13% of the GLA rented in the city and its metropolitan area corresponded to TAMI companies, occupying around 100,000 square meters. Renowned technological and cybersecurity firms such as AutoDesk, Qualtrics, and Netrix are among these companies.

The growing presence of tech companies in Mexico City underscores a trend toward digitalization and innovation in business. This technological dynamism drives the demand for modern office spaces adapted to the needs of advanced digital infrastructure, which in turn fosters investment and the development of real estate projects focused on these characteristics. Proof of this is the concentration of the TAMI industry in high and very high-quality offices. Currently, 90% of the GLA occupied by these companies is of class A+ and A. Specifically for technology companies, this percentage increases to 92%.

High-quality buildings usually have cutting-edge technological infrastructure, such as advanced network services and state-of-the-art security systems. However, technology's influence on the office market exceeds the demand for physical space. Real estate developers increasingly focus on creating intelligent buildings that integrate technological solutions to optimize energy use, improve security, and facilitate facility management.

Nowadays, space efficiency is more indispensable than ever in Mexico. In a context where more than 20% of corporate space is vacant, and the market has not fully recovered to pre-pandemic occupancy levels, where occupancy has been partly boosted by a decrease in the delivery of new inventory and the readaptation of spaces, the incorporation of technology in office buildings presents a pivotal opportunity to attract new tenants and stabilize the oversupply of offices.

On the one hand, adapting offices to current technological needs improves users' experience and productivity, which translates into increases in asset value and long-term profitability. On the other hand, integrating technologies such as artificial intelligence and the Internet of Things (IoT) in building management allows for greater customization and optimization of space use, reducing operational costs and increasing occupant satisfaction. These innovations can be very attractive to tech companies and crucial in shaping the office market.

Regarding this, the study "Megatrends: A Guide to the Technologies That Will Revolutionize 2024" highlights six key technologies for Mexico: artificial intelligence, gaming, cleantech, metaverse, open economy, and biohacking.

The report by Endeavor and Banco Santander Mexico highlights the exponential growth of artificial intelligence, with 332 active companies generating an average of 30 jobs each and an expected 55% increase in employment by 2025. Additionally, gaming, an emerging industry with more than 70 million players impacting education, is present in the country with 67 companies, most of them (51%) founded in the last five years.

Regarding cleantech, focused on environmental solutions and represented by at least 26 ventures, the study anticipates an annual growth of 30% by 2025, while the open economy, which includes 14 companies specializing in open banking, open finance, and open data, has a potential growth of 26.8% with investments estimated at more than 76 million dollars. Lastly, the metaverse and biohacking emerge as sectors with a growing ecosystem and significant potential for transformation in health and wellness. The former, represented by 19 companies in early stages, generates more than 170 jobs, and the latter, with 114 ventures and 29 million dollars in capital, projects an annual growth of 8% by 2025.

These technological trends are essential for triggering the development of data centers and advanced industrial infrastructure and generating growth in the national office sector. For more information about these and other trends impacting Mexico's commercial real estate market, explore SiiLA REsource or write to us at contacto@siila.com.mx.