In this episode, host Ricardo Rascon and David McQueen build on their previous conversation. After focusing in the last episode on manpower costs in Mexico, Ricardo and David shift their attention today to discussing real estate and building costs in Mexico.
To begin, David clarifies that foreign individuals and corporations can acquire and lease property or buildings just the same as Mexican nationals can. In some markets, however, commercial properties are closely held, and owners often favor leasing income over selling new real estate. The most common scenario for industrial manufacturing is in an industrial park. Typically, the shelter providers operating the park will offer a wide range of shared services for employees. He also shares what leases in Mexico look like compared to American ones. Then, David identifies the key things companies should look for when searching for a building or piece of land. In terms of cost, industrial facilities should consider proximity to unskilled labor, access to transportation lanes, security and services, and utilities. Generally, unskilled workers in Mexico are not very mobile. Mexican employers of choice are required to provide transportation for employees. When it comes to services and utilities, companies should be on the lookout for the availability of sufficient electricity, water, and gas. This includes what is provided in the building itself, as many will not have a significant amount of power. In most cases, a Class A building in Mexico will meet your requirements as an industrial user comparable to operations elsewhere in the world. Dave gives an overview of what these buildings typically look like.
Finally, David shares insight into what these spaces will probably cost. Like everywhere else, the location in Mexico really matters. Purchase prices will vary depending on the market and the condition of the location, but in many markets, you will find a decent industrial building for around $22 USD per square foot. In closing, he offers final advice for someone looking to purchase in Mexico.
Thank you for joining us on Manufacturing in Mexico!
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Read this blog post to learn more about leasing industrial real estate in Mexico: https://insights.tetakawi.com/leasing-industrial-real-estate-in-mexico