Commercial leasing glossary (Mexico)
The words you'll meet when leasing retail space in Mexico, in plain language and in both English and Spanish.
Anchor tenant (tienda ancla)
A large, well-known tenant (department store, supermarket, cinema) that draws traffic to a shopping center and supports the smaller stores around it.
End cap / corner unit (local en esquina)
A unit at the end of a row or on a corner, with two sides of visibility and often extra signage.
Foot traffic (afluencia)
The number of people who pass or visit a location over a period; a leading indicator of a store's sales potential.
Frontage (frente)
The width of a space's storefront facing the corridor or street, a key factor in visibility.
Grace period for fit-out (periodo de gracia)
Rent-free (or reduced-rent) months granted to the tenant to build the store before opening.
Grey shell (obra gris)
A space delivered with its structure, walls and roof but without finishes: no floors, ceilings, final installations or façade fit-out.
Gross leasable area (GLA)
The total floor area of a property that can be leased to tenants, excluding common areas such as corridors and parking.
INPC indexation (actualización por INPC)
The annual rent increase tied to Mexico's National Consumer Price Index (INPC), the most common escalation clause in commercial leases.
Key money (traspaso)
A one-off payment a new tenant makes to take over a commercial space, usually to the outgoing tenant and sometimes to the owner.
Land-use permit (uso de suelo)
The municipal authorization that defines which activities are allowed on a property; your business activity must be compatible with it.
Lease guarantee (fianza / obligado solidario)
A guarantee that backs the tenant's obligations, typically a surety bond or a jointly liable guarantor.
Letter of intent (carta de intención)
A short, usually non-binding document in which landlord and tenant agree the main terms before drafting the lease.
Lifestyle center
An open-air center that combines fashion, restaurants and entertainment in a walkable setting, aimed at leisure visits.
Maintenance fee (cuota de mantenimiento)
A monthly charge, on top of rent, that covers the shared costs of a shopping center or building: common areas, security, cleaning and often marketing.
Occupancy cost (costo de ocupación)
Everything a tenant pays to occupy a space (rent, maintenance fee and other fixed charges), often expressed as a share of sales.
Pad site (inmueble independiente)
A freestanding building or plot within or next to a shopping center, often used for drive-thrus, banks or restaurants.
Percentage rent (renta variable)
Rent calculated wholly or partly as a percentage of the tenant's sales, usually on top of a guaranteed minimum.
Power center
An open-air shopping center built around several large-format anchors (big-box stores) with surface parking and smaller inline units.
Rent per square meter
Monthly rent divided by the leasable area, the standard way to compare spaces of different sizes.
Security deposit (depósito en garantía)
An amount the tenant pays at signing, usually equal to one or more months of rent, returned at the end of the lease if obligations are met.
Signage rights (anuncios)
What signs a tenant may install: façade sign, a slot on the center's pylon or totem, digital screens, and the rules that apply to each.
Strip center (plaza comercial)
A row of stores with shared parking in front, usually serving the surrounding neighbourhood with everyday services.
Tenant mix (mezcla de inquilinos)
The combination of categories and brands in a shopping center, planned so that stores complement each other and attract the target shopper.
Turnkey (llave en mano)
A space delivered fully fitted and ready to operate, often after a previous tenant in the same category.
VAT on commercial rent (IVA en la renta)
In Mexico, commercial rent is subject to VAT (IVA): 16% in general and 8% in the northern and southern border regions under the border stimulus.
White box (obra blanca)
A space delivered with basic finishes (walls, floor, ceiling, lighting and services at the unit) ready for the tenant's fit-out.