What is the term of a typical lease?
How is the rent quoted?
What is the tenant's option for termination or break?
Typically, the tenant has the right to terminate the lease with 6 months’ notice.
Does the tenant have the option to renew? What is the length of the typical option?
Typically, the tenant has the right to renew, with an average length of 3-5 years.
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 3 to 6 months in advance of lease expiration.
What is the typical rent-free period, if any?
Usually a rent-free period of 2 months for a 3-year lease; 3 months for a 5-year-lease.
What is the typical rent escalation?
If the deal is made in pesos, the Mexican National Consumer Price Index (NCPI) + 2% is used. If the deal is made in US$, CPI is used.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company.
Otherwise, sublets require the landlord’s written approval.