Transforming the Office Market in Mexico. The Impact of the TAMI Tenant Group in the Digital Era

In Mexico's office market, a closely-knit group of tenants known as TAMI is deeply intertwined with the digital age. This exclusive cadre encompasses businesses specializing in technology, advertising, media, and information goods and services. Over the past two decades, their foray into the corporate arena has transformed the dynamics of office spaces in the country. With a collaborative and flexible approach, these tenants have emerged as pioneers in innovation, creating cutting-edge work environments and corporate cultures in Mexico.

While members of the TAMI group laid the groundwork for a robust digital industry in the 1980s and 1990s, thanks to the increasing adoption of technology, globalization of the economy, and shifts in consumer behavior, their most significant growth occurred between 2000 and 2010. From this point onward, the TAMI group diversified and consolidated steadily despite external factors like the coronavirus pandemic, which slowed their expansion (-3%) in Mexico's primary office markets over the last three years. Nonetheless, the TAMI group continues to demand office spaces, and it's expected to play a pivotal role in the evolution of the office market in the coming years.

According to data from SiiLA, the TAMI group occupies between 5% and 6% of corporate space in Mexico's major office markets, spanning over 550,000 square meters. Key tenants (by occupied square meters) within the TAMI group include major companies like Cisco, ESPN, Facebook, Globant, Google, Hewlett-Packard, IBM, and Oracle, to name a few. These companies represent 21% of the total area occupied by the TAMI group.

The TAMI Group's Demand: Location, Quality, and Size

The office space demand from the TAMI group is characterized by its emphasis on excellence and the strategic location of its workplaces. According to SiiLA Market Analytics data, approximately 90% of the space these companies occupy falls within the A+ and A-class categories, signaling a clear preference for high-quality areas equipped with cutting-edge amenities and technology. This preference for top-notch work environments reflects the importance the TAMI group places on creating an atmosphere conducive to innovation and collaboration, vital elements in the technology and creative industries.

Furthermore, companies in the TAMI group often select spaces in high-impact commercial areas such as Mexico City, Guadalajara, and Monterrey. In fact, more than a third of the TAMI group's office space is in Mexico's capital city's central business district (CBD), encompassing submarkets like Reforma, Polanco, and Lomas Palmas. This suggests a business strategy focused on proximity to business hubs, clients, business partners, and networking opportunities.

On the other hand, data reveals that the average space occupied by TAMI group companies exceeds 1,500 square meters. Technology companies, in particular, demand larger office spaces, with an average of 1,800 square meters. Conversely, media and information agencies, marketing, and advertising tend to occupy spaces ranging from 900 to 1,600 square meters.

The preferences of the TAMI group can significantly influence the evolution of Mexico's office sector, driving demand for high-quality spaces, strategic locations, and work environments that foster innovation and collaboration. This could lead to changes in supply and rental prices in the country's office market, creating investment opportunities for developers, property owners, and real estate service providers. However, it also presents challenges in terms of competition, especially in densely populated urban regions with limited new inventory.

For more information on these and other players in the commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.