Rent of commercial premises: economic activation guide

In accordance with the world economic situation caused by the health contingency, the reactivation of this area will take place in terms of flexibility and restructuring of spaces, prices and dynamics around the marketing of products and services.

This reordering will depend on the sector to which we refer. But nevertheless, the main post-pandemic requirement is the reimagining, implementation and strengthening of aspects that were already in development.

The new elements that were promoted as a result of this context are: the digitization of processes for the acquisition of products and services, physical deliveries but with minimal contact, the efficient use of space and the extension of the digital experience in person. which aims to adapt businesses and the work carried out in them with this new vision.

During the economic reactivation of the commercial sector of premises, the face-to-face experience will be merged with the online experience in an operational and value-added platform for the client (1).

This is why it is very important that your business, even if it is being offered online at this time, consider the option of having a physical space, since The sectors will be activated again and it will be necessary to have a safe and comfortable place to receive your customers, under new protocols and service experiences (1).

Benefits of renting premises

The rent of premises is essential for the activation of the economy Vallejo Properties
The rent of commercial premises is essential for the activation of the economy, because it gives rise to spaces with different turns in a variety of areas.

The rent of commercial premises is an investment for both the tenant and the lessor. In the case of the lessee constitutes an opportunity for growth and greater proximity to your target audience, in addition to strengthening the economy of your business and that of the area where you are located.

In fact, depending on the location, you could ally with other investors to take your business further and get a better position in your sector.

Renting is a good idea whether you have been with your business for years and you know exactly what you are looking for to expand, like you’re just getting started , as this will allow you to acquire the necessary experience.

Apart from these benefits, the main advantages of renting a commercial space, compared to other options such as buying or building your own premises, are (2):

• Flexibility . Although your main idea should be to establish yourself in a place for a long time to establish clientele and advance your project towards expansion, if you have the need to change, you can do it more easily, taking into account what your rental contract establishes, unlike That it was yours and you had to sell it.

• You would not make a strong investment. If you buy, you need to make a larger down payment as part of your purchase, which could take you longer to save, unless you have some type of credit. Definitely, you would not have this condition when renting.

The challenge of renting premises is to combine the digital experience with the physical Vallejo Properties
The commercial premises for rent will have the challenge of combining the digital experience with the physical or face-to-face for the client.

Main trends of commercial premises for rent

Whether you rent in an individual premises, in a special building or within commercial or industrial centers, you must consider the benefits and costs of each of these options, in addition to getting up to date with the legal, commercial and economic procedures.

Thus, We recommend you go to real estate professionals to obtain the advice you need in the installation of your business . At Vallejo Properties we can provide you with the support you require, just contact us and we will solve it .

Remember that we have different areas of Mexico City and its surroundings available for renting commercial premises , such as the Vallejo area, the Doctores, Juárez and Cuauhtémoc neighborhoods, the Polanco area and the municipality of Tlalnepantla.

One of the main current trends is the creation of spaces where it is possible to practice healthy distance, in addition to having an experience that goes beyond virtuality.

Somehow, in front of ecommerce, it will be important for physical businesses to stand out with a greater ability to provide interaction safely . The schedules will also have to be reconfigured to provide a complete and reliable service, addressing issues such as the maximum quota of people who can occupy the same space (3).

It will also be important incorporate technology with devices and tools that allow operations within a premises to be made easier and safer , such as ordering food or requesting a garment, with the idea of keeping customer contact with the products or services provided very controlled.

In addition to maintaining attention with the client, it is also important to reach him properly, especially now that physical encounters are limited. A valuable tool for this is Google Ads.

Also as shown by the current trend of the click and collect , the experience of buying online and collecting in the physical store It has become one more option for customers, with the idea of shortening times, not depending on the parcel service or delivery times, and being able to organize to pick up a product (4).

It is a flexible and safe option to avoid risks of direct contact, which allows you to continue having the experience of going to the store (4).

The main challenge for the rental of commercial premises is to provide interaction, experience and security, to continue attracting the public and customers.

This could also be an interesting trend for services , in order to make a reservation, schedule an appointment or set aside, for a period of time, your stay in the supermarket or clothing store, which is in accordance with health protection measures.

Another preference used in South America and Europe is the so-called experience “Pop-up” , where businesses and companies, which can be two or three and temporary, optimize their services and products in the same business premises , which also allows them to share costs and create an extended and different experience for their different audiences (5).

This implies reviewing, from the beginning, the conditions and agreements between tenants and landlords to know if the space has that objective, or can develop it. If you want to know a little more about the options that we handle at Vallejo Properties, do not hesitate to write to us .

Shopping centers are a common point for the rental of commercial premises Vallejo Properties
Shopping centers are a common point for the rent of commercial premises, however, you should check if this option fits your budget and audience.

Centers and commercial premises for rent

On the subject of shopping centers, the cities with the highest concentration of this type of real estate are: Mexico City (29%), Monterrey (8%), Guadalajara (6%), Puebla and Tijuana (3% each). In total there are 703 shopping centers with a very high occupancy of 98% (6).

Although it is an attractive option due to the scope and prestige it represents, It is a very competitive scenario and with a not so personalized approach , since the audiences attracted by shopping centers can be very wide. This without considering the high rents that are charged.

Currently, the creation of just over 4 million square meters of shopping centers is planned by 10 developers (6).

Indeed, the future of shopping malls and retail spaces retail for small and medium establishments, it is a kind of shopping experience between the physical and digital worlds, where the tours could be generated autonomously and linked to a smartphone , so that there is little contact with employees or cashiers for the process of purchasing or collecting products on the premises (7).

Of course, digital could personalize and give effectiveness to the image of your business, as another positioning channel, but it is very important not to neglect human treatment as part of the face-to-face experience , which remains irreplaceable.

If you are interested in industrial areas, we suggest you read:
“Guide to industrial areas for rent in Mexico City: concepts, locations and trends.”

Tips for renting premises

If your business is focused on offline, or a part of it works physically and requires a special space, either for customer service or as a branch to publicize your products or services, you should consider the following recommendations to start your business (8) (9) (4):

1. Decide on the area and specify the activities to be carried out. With the current global contingency, it is important to redefine the usefulness of having a premises in terms of operation, sanitation and practicality, since although some administrative tasks can be carried out remotely, others are essential in the physical space, such as the management of a restaurant or the realization of events.

2. Plan what you need the premises to have. This, so that you give yourself an idea of your main needs and thereby define what you require versus what you can find. Also check if the style of the premises is already defined (in interior design) and if it matches what you are looking for.

3. Consider that the location should be strategic. Whether it is an area that brings you closer to your potential customers, the development sector you want to surround yourself with and / or is close to your home.

For example, if your products are for general consumption, such as stationery, groceries or food, perhaps you need a crowded place, but if it is a specialized service, such as a law firm, you must define the advantages of locating in an area or other.

4. Establish days and hours for your business. We recommend that you explore the area at different times and days to learn a little more about the dynamics around the next location of your business, and to know which are the most convenient for security and traffic issues, depending on the type of business you have.

5. Consider the strategy click and collect . Especially in this time of transition towards the “new normal”, where it is becoming important to resume economic activities without neglecting care practices. Thus, your business will become a middle point between the digital and the physical, and you will be able to offer a differentiated experience for your customers.

On the one hand, you will facilitate payment and access to the products, and on the other, you will give them the opportunity to go to the premises. In this way, you will continue with your business, you will be flexible in the face of new regulations and you will have innovative purchase and contact options.

6. Know the surrounding businesses. As part of the exploration in the area, it is important that you identify which are the nearby turns: if there is competition for your business, how you can integrate into that dynamic and above all, if the surrounding businesses do not represent a problem for your objectives.

For example, if you plan to put a relaxation center and spa next to a bar, you will hardly be able to give your customers the attention they need.

7. Corroborate the status of water and electricity payments in the place. Above all to verify that they are up to date, that you will not have to pay back balances (which do not correspond to you) and that you do not share a light meter with other stores that are next door, because it can be a significant organizational problem.

At this point, we recommend you maintain clear communication with the landlord from the beginning, with the idea of achieving a favorable negotiation for both parties.

8. Review the premises in detail. It may seem obvious, but it is important that you know the condition and operation of the place from the beginning, such as the installation of gas, water and electricity, as well as the bathrooms and the sanitary and rain drainage areas.

This will avoid surprises in the future and will allow you to decide if the place is not only suitable for your clients (comfortable, safe, equipped and attractive), but also for your collaborators. In addition, it is important to know the operating conditions of the place: what you can or cannot do, such as painting, drilling or installing some special equipment.

9. Set the rent with a contract. It is always very important that the terms of the agreement are in writing and with legal support, to close the deal. It doesn’t matter if it’s acquaintances or if you think it’s not necessary, because it always is. This is a security issue for both parties.

The agreement must include basic data such as the location and description of the premises, the rent to be paid, the deposit, the form of payment and duration, which commonly covers one year. You must also have receipts for the payments you deliver.

At the same time, it must be clarified who is responsible for the repair and improvement works, the causes for cancellation of the contract and the penalties resulting from that decision for either party.

10. Don’t choose under pressure. We always recommend that you do a search of several options, in addition to finding out the comments there are about the companies, visiting the places in depth, evaluating the benefits for your business and thinking about having a long-term contract, unless it is about a special or emergency situation.

In the meantime, don’t worry if it takes you a little longer to make a decision, as it is an investment for you and the people who work with you.

The clearer the operation and status of the premises,
the experience of working there and serving your customers will be
better.

Remember that the rental price of commercial premises is in accordance with the square meters of construction, and factors such as the number of private spaces (bathrooms and rooms), in addition to finishes, air conditioning systems, lighting, fire , heating and parking.

It is also important to consider the conservation conditions, the age, the roads, the services around the place, as well as the security and accessibility of the premises. If you want to know more details of this type about our rental of commercial premises, please contact us .

It may be the case that the rental price is very low because it requires the tenant to put a part to cover those expenses; contrary to the rental price being higher because it already includes the conditioning of the place. In any case, you must evaluate the terms of the deal.

Besides that It is advisable to consider the rent of a premises as a long-term project Because, as we have mentioned, the important thing is to retain your customers and give them the assurance that they can find you in the same place for a long time; contrary to the image you can give when moving continuously from the premises.

Commercial spaces necessary to give projection to a business Vallejo Properties
Renting commercial spaces is a necessary step to give space and special projection to your business.

Requirements for the rental of premises

In addition to these recommendations, it is very important to consider the minimum requirements to rent in Mexico (10):

1. Money saved. First of all, it is necessary to have a section to cover the rental costs and the guarantee deposit, which can be up to two months as an advance and serves to ensure the payment of debts and repairs at the time of vacating the premises.

Generally, it is agreed to return this deposit if it is not necessary to cover any rent or damage, but it is more common to do it as coverage of the months that remain before vacating the place or the contract expires.

Also consider another part of the money to finance your business during the first months or make specific adjustments to the place.

2. Copy of current documents. Such as proof of address, INE or passport, deeds (although not in all cases), RFC (Federal Register of Taxpayers) and CURP (Unique Population Registry Code). Once the contract is signed, you must keep a copy signed by both parties.

In addition to it, It is important to notify the authorities that you are opening a business. In fact, it is highly recommended that, after locating the premises in which you want to establish yourself, and before signing the contract, you investigate whether the use of commercial land is allowed in that municipality or that area. You can do it through the procedures window of the corresponding mayor’s office (9).

By corroborating this situation, We recommend starting the registration process: Your name or the company name of your business is required, its constitutive act, the RFC of the individual or legal entity, the location and surface of the premises, and the use of the land that you will have clarified by then, in addition to the accreditation of possession of the property and the annexes, in case it has parking or additional warehouse.

It is very important to check if your specific business does not require a special license to operate (9). In this way you will have everything in order and up to date.

Finally, remember that the money earmarked for rent should not exceed a third of your income so that it does not become a source of stress , instead of growth.

That is why you must have a viable plan, review the rental opportunities, discuss the options, review the legal and technical terms of the place, make the final decision and conclude the rental process to formalize the operation. If you are interested in knowing what the requirements are to rent with us, write to us and we will give you more details .

If you want to know more about the rent of premises in CDMX, specifically its characteristics, areas and prices, see: “Rent of commercial premises in CDMX: costs and benefits”.

Present and future of commercial premises

The companies Amazon and Walmart are pushing a trend that favors the freedom and autonomy of buyers in supermarkets, since when entering the premises they only need to enter, take the products they need and leave the place, without further mediation. The purchase is recorded using an artificial intelligence system and the installation of cameras on the site.

In this way, there is a stock tracking, according to the sale of products, which is recorded for both the store and the person who buys, in their account statement (11). It is important to consider this example of a trend for your business, even if it is not a similar turn, because at this time it is being necessary to implement novel adjustments to generate a commensurate experience with new audiences and needs.

In this sense, there are many segments of the population that will continue to visit stores and local , in the midst of a paradigm shift that requires understanding the times and ways to activate the economy in commercial premises around the world . At Vallejo Properties you can count on us to take that step .

References

1. PWC. Real Estate 2020. Building the future. PriceWaterhouseCoopers, 2014. Retrieved July 28, 2020.

2. Yucatán Premier. Buying vs renting a commercial premises . Yucatán Premier, 2016. Retrieved July 28, 2020.

3. Aurora Turriago. 5 trends will impact the use of commercial spaces. Personal Finance, 2018. Retrieved July 28, 2020.

4. Retail Analytics. Click and Collect: what is this retail strategy about? Retail Analytics, 2019. Retrieved July 28, 2020.

5. Portfolio. ‘Pop-Up’ experiences, a marketing trend for 2020 . Portfolio, 2020. Retrieved July 28, 2020.

6. Deloitte. Real Estate. As a tool for asset and geographic diversification. Deloitte, 2019. Retrieved July 28, 2020.

7. Wendy Solís. Retail is transformed . Millennium, 2019. Retrieved July 28, 2020.

8. Ingrid Cervantes. 7 mistakes when renting a place. Recommendations to choose well before starting a business. Comunica y Emprende, podcast, 2017. Retrieved July 27, 2020.

9. Cubic meters. Tips for renting a business premises . Cubic meters, 2015. Retrieved July 28, 2020.

10. Ingrid Cervantes. 7 requirements to put a place. What do I need to rent a place in Mexico? Comunica y Emprende, podcast, 2018. Retrieved July 27, 2020.

11. Leandro Murciego. What will the commercial premises of the future be like . The Nation, 2020. Retrieved July 28, 2020.

Let us find
the perfect location

for your business

Tenemos
la ubicación perfecta

para tu negocio.

¡Te ayudamos a encontrar el espacio perfecto para tí!
Envíanos un mensaje con tus necesidades, y nos pondremos en contacto contigo a la brevedad posible.

We have
the perfect location

for your business.

Let us help you find the perfect space!
Send us a message with your needs, and we will contact you as soon as possible.