A Guide To Renting Office Space in Mexico
Know the haves and the have-nots of the most optimum coworking space in Mexico
Mexico is a rapidly growing market for businesses, with a vibrant economy and a young and educated workforce. As such, more and more companies are looking to set up shop in this exciting country, and one of the first decisions they face is finding the right office space. Renting office space in Mexico can be a complex process, so we have put together a guide to help make your search easier.
Before we jump right into this crux of it, here are some important data about Mexican real estate, especially for commercial purposes -
About Mexico’s Rental Workspace Conditions
About 90% of large organizations in Mexico avail the option of renting office spaces, leaving just 10% owning their facilities. In 2016, the rents in central Mexico City ranged from $17 to $26 per sq metre, based on the quality of the space. An estimate by Colliers International placed total office space inventory close to 8.3m sq metres. Approximately, 3.5m is of the best quality, described as A+; 1.8m is class A; and 3m is class B. However, the real estate consultancy, CB Richard Ellis (CBRE) registered slightly different stats, reporting that the total office space supply is 9.5m sq metres, of which 4.9m are either class A+ or A. In the current years, new office space has been rented out rapidly, thereby, leading to occupancy rates of just under 90%. Capitalisation rates – property annual income as a proportion of capital value – amounted to 10% in 2011, but moved down to 7-8% in 2015 and 2016.
The office market in Mexico City was growing at a persistent rate during 2016 as 26 buildings in the A and A+ categories were completed in 2015, including 566,000 sq metres, or 11.2%, of the existing stock. Coldwell Banker Commercial estimated that in 2016-20, about 500,000 sq metres would be added each year.
Factors to consider while renting an office space in Mexico
Location, Location, Location
Just like any other real estate transaction, the location of your office space is one of the most important factors to consider. You will want to choose a convenient location for both your employees and your clients. Look for an area that has easy access to public transportation, has a variety of restaurants and amenities nearby, and is in a safe neighbourhood.
Determine Your Space Requirements
Before you start your search for office space, it is important to determine your specific space requirements. How many square feet do you need? How many private offices and shared spaces will you need? How many employees will be working in the space? Answering these questions will help you find a space that is the right size and has the right layout for your business.
Set Your Budget
Rental rates for office space in Mexico can vary greatly depending on the location and the type of space. Set a budget for your monthly rent and consider other costs such as utilities, parking, and maintenance. Make sure that your budget is realistic and that you have a contingency plan in case your costs are higher than expected.
Get Professional Help
Renting office space in Mexico can be a complex process, and it is always a good idea to get professional help. A real estate agent who specializes in commercial properties can assist you with your search, negotiate the lease, and help you with the legal aspects of the transaction.
Check The Lease Terms
When you find an office space that you like, be sure to review the lease terms carefully. Check for any hidden costs, restrictions on use, and termination clauses. Make sure that the lease terms are favourable and that you fully understand all of the provisions before you sign on the dotted line.
In conclusion, renting office space in Mexico can be a great opportunity for businesses looking to expand into this vibrant market. By following these tips, you can find the right office space for your business and set yourself up for success in Mexico.
How can Gubixi help?
Gubixi, as a rental office workplace provider, has the potential to play a key role in promoting flexible workspaces. By offering a range of rental office options, Gubixi provides businesses with the flexibility to choose the type and size of office space, and the amenities they require like high-speed internet, conference rooms, etc. that best suit their needs, whether it is a private office or a shared workspace. This level of flexibility helps businesses to adapt quickly to changes in their workforce size and operational needs, while also providing a cost-effective solution for office space. By fostering an adaptable workspace, Gubixi can help businesses to become more agile and responsive to changing market conditions, ultimately contributing to their long-term success.
