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Mexico

Mexico has adopted most of its business practices from the United States. Lease contracts, agreements and business structures often adopt a US format, which has encouraged the entry of North American investors. International retailers entering the Mexican market will find many familiar terms and procedures. Outside Mexico City, other important retail destinations include Monterrey, Guadalajara, Puebla and Cancun. Many retail brands are present in Mexico, most notably department stores and big box outlets, such as Sears, JCPenney, Home Depot and Costco, as well as most fast food outlets. Fashion retail is strongly represented by both European and US brands. Most international retailers enter the Mexican market by forming alliances with local partners. Recent political and economic stability has encouraged inbound investment, tourism and manufacturing. All these factors are fueling consumer spending, to the benefit of the retail sector. In Mexico's major cities, sophisticated high street retailing has, for the most part, given way to urban and suburban shopping centers. The best regional malls and fashion malls command rents of between $40 and $80 per square meter, per month. Shopping centers are enjoying rental growth, albeit at a moderate rate; growing demand is being satisfied with new supply. The majority of new shopping center construction is located in Mexico City (almost 750 K sq. m.) and Monterrey (with almost 500 K sq. m.). Currently 1.9 million sq. m. are under construction in Mexico, considering only projects larger than 10 k sq. m. Inventory of shopping centers larger than 10 K sq. m. is estimated at more than 21 million sq. m., mostly concentered in Mexico City (29%). Community Centers represent 36% of total inventory, followed by LifeStyle Centers with 28% and Power Centers with 27%. Main retailers in Mexico according to their revenue, are: WalMart, Soriana, Femsa (Oxxo), Comercial Mexicana, Coppel, Chedraui, Liverpool, Sanborns, and Sears.

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New Arrivals

The Real Estate market for shopping centers in Mexico keeps growing at the same rhythm than previous years, as it can be seen with the opening of 28 new malls, adding more than 1.0 million sq. m. to the inventory. Growth rates in inventory in 2016 surpassed the previous year, with a growth of 5.0%, above the 4.1% rate of the previous year. The increase was due to a higher number of mixed uses shopping centers that started operations in comparison to the previous year. The largest cities, such as Mexico City and Monterrey were the largest contributors to new space added to inventory; however, medium-sized cities like Queretaro were receiving some of the new brands, such as Decathlon. Luxury commerce will continue to play an important role in retail sales; in fact, according to Euromonitor, at the end of 2016 luxury trades had a value of more than 3 billion dollars.

Currency

Mexican Nuevo Peso (MXN)
EUR €0.04
USD $0.06
GBP £0.04

Language

Spanish
Hello: Hola
Thank you: Gracias

International Dialing Code

+52

Time Zone

GMT -6

Cost of a Pair of Jeans

1,500.00 MXN

Cost of a Cup of Coffee

30.00 MXN

Cities in Mexico

Contact Us

Lyman Daniels
Pedregal 24, 17 Flr, Molino del Rey 11040,
Mexico, D.F. 14120
+52 55 5284 0010 | lyman.daniels@cbre.com