Offices Eye TAMIs For Opportunities March 29, 2019 Brett Merz TAMI—Technology, Advertising, Media, and Information businesses—represent a very powerful tenant group within the commercial real estate space, one that is reshaping workplace expectations. Considered the leaders of today’s modern and innovative office, the sheer size and growth momentum of this group is what makes them a high tenant priority. According to Nelson, TAMI companies are characterized as the fastest growing real estate markets, meaning they absorb more space than their counterparts. The tech sector alone accounts for nearly 20% of all office leasing activity. Just recently, KBS renewed a 19,754-square-foot lease with Marquis Software, a data analytics software and service provider at its Tollway North Office Park property in Plano, Texas. But what motives a TAMI company and what are property owners—like KBS—doing to attract these tenants? Workplace Flexibility TAMI led the charge of open office configurations before the trend started dominating headlines. Open concepts remove physical barriers and promote a team culture that focuses on collaboration, engagement, and mentoring of employees. Additional complementary private areas, quiet zones, and lounges give employees autonomy in how they choose to work, which increases job satisfaction, productivity, and better deliverables. Office buildings with flexible floorplans and different onsite work areas (conference rooms and rooftop terraces, for example) factor into a TAMI’s site selection. Technologically Adapt TAMI companies love technology. And Millennials love technology. It has been estimated that by 2020, Millennials will account for 46 percent of U.S. workers, many of whom will find themselves in the TAMI sphere. This cohort is known for being exceptionally technology savvy with an inherent need to engage and collaborate using their devices—personally and professionally. TAMIs (like their Millennials workforce) are heavy integrators of technology in the workplace and many of their business models are centered entirely around it. Connectivity ranks highest in productivity and is the most sought-after commodity. According to HqO, internet is one of three factors tenants look for in office space, including cost and location. Their businesses rely on connectivity to function. A media company will falter with disrupted networking, while an information provider could face serious consequences in the collection—or loss—of data during a technology fail. As such, buildings with strong technology infrastructure, backup support systems, and uninterrupted connectivity are highly sought after. Property-level mobile apps are also a cutting-edge connectivity factor that appeal to TAMIs. Having the ability to interface with the property’s amenities from a mobile device, for example, is very alluring because it’s convenient and saves time. Tenants can easily reserve communal conference space, order food from the onsite or local eateries, or check on their dry-cleaning status—all from the palm of their hand. Amenities are King The better the amenity package, the higher overall employee and tenant satisfaction—and ultimately, better building occupancies. Opportunities lie in amenities and offerings that are convenient and can help employees maximize their time. Think fitness studios, onsite or proximate dining options, social space, and concierge-type of services. TAMI companies want more than just four walls of office space. They want a workplace experience that spark connections—an experience that is part of their brand. For the TAMI employees, work is more than just earning a paycheck. For many, it’s a lifestyle. Providing TAMI tenants the resources to help them invest in the quality of the workplace is where landlords and property owners will see the greatest opportunity. Brett Merz is a senior vice president with KBS overseeing more than 2.9 million SF of space in Dallas, Texas.