Transferring a Lease: The New Gateway into Mexican Retail

When the market runs out of available storefronts, growth doesn’t just mean opening a new door; it means getting someone else to close theirs. In Mexico’s most competitive retail corridors, expanding no longer hinges on finding a vacant space, but on negotiating the takeover of one that’s already in use.

This dynamic reflects growing demand—driven in part by new players and Asian brands—and a supply expanding at a slower pace, which has pushed vacancies down to roughly 5%—a level not seen since 2019—and extended wait times. According to Primo García, Retail Director at Colliers, securing a location in areas like Reforma, Polanco, or Roma-Condesa can take anywhere from three to six months.

In this context, takeovers have gone from being the exception to becoming one of the main expansion strategies. What used to be associated almost exclusively with restaurants in gentrified neighborhoods now also includes health, fashion, automotive, technology, financial services, and entertainment, reshaping the rules of negotiation.

“For years, brands called the shots. Today, it’s generally landlords. And in certain corridors, not even them: the real decision-maker is the current tenant, who can transfer their space—and their lease—if the offer is attractive enough,” García explains. “Between now and 2027, takeovers will be essential for accessing prime properties with good exposure, location, and image, not just because of space scarcity, but because of the sheer number of brands ready to take someone else’s place.”

This creates a strategic challenge for companies: reorganizing their retail networks, deciding how to grow and access new consumer markets without sacrificing profitability per square meter, or, when needed, knowing when and to whom to give up a space. The key lies in identifying which stores no longer generate value and turning their exit into an opportunity. But redesigning a retail network goes beyond opening or closing locations. It demands redefining the purpose of each one. And that raises a critical question: Is it better to be in a shopping mall or in a standalone store?

There’s no single correct answer: the choice depends not on the space, but on the objective. A shopping mall guarantees steady foot traffic; a standalone location offers strategic visibility. The former turns traffic into sales; the latter turns presence into identity. Brands that understand this distinction no longer ask “either/or”—they ask when, where, and how each format adds value. In a saturated market, the channel is not just a point of sale; it’s a positioning statement. And in an omnichannel environment, every square meter must serve a unique function: attract, anchor, or amplify, concludes the specialist in representing financial and consumer service users.

Waiting, however, comes at a cost. The sector’s momentum has pushed rents upward. According to García, by the end of 2025, the average cost of occupying a storefront—including maintenance and key money—will be 15.2% higher than in 2024. And in this kind of market, postponing a decision can stall expansion and erode margins, because in retail, time is also paid for by the square meter.

Beyond rent, the lease itself has become a market lever: its duration determines whether a space can be transferred, how much it’s worth, and whether the deal makes sense.

For the incoming tenant, a takeover is valuable when the active lease allows them to avoid delays, lock in preferential rents, or secure terms that are hard to replicate. For the outgoing tenant, it’s a way to exit without penalties and capitalize on the space, when leaving creates more value than staying, or when the terms have shifted.

To learn more about the trends redefining Mexico’s commercial real estate market, visit SiiLA REsource or email primo.garcia@colliers.com.