Commercial Security Deposits in Mexico: Rules and Usages

Unlike residential leasing which socially tends to cap requirements at one month, the commercial security deposit is a realm of absolute free designation. Corporations, shopping plazas, or industrial warehouse owners draft negotiations anchored in strong private patrimonial protection.

Customary Amounts ("Full Freedom")

Without any limits within the Federal Civil Code for this B2B (Business to Business) classification, real estate administrators dictate highly solvent conditions as protection against severe physical damage:

1. Smaller Premises (Street Retail): Two months' rent as a baseline requirement to protect storefronts and investments in build-outs either performed or requiring subsequent demolition.
2. Shopping Plazas / Cinemas / Sub-anchors: Up to three (3) months' rent, plus a multi-risk policy or joint insurances.
3. Industrial Warehouses (BTS - Build to Suit): Figures run in the millions, and deposits or "Standby Letters of Credit" from banks function as guarantees for 10-year contracts, assuring the builder backing against early withdrawals (early rescission).

The Controversial "Key Money" (Derecho de Guante)

It is an institutional and 100% lawful practice in Mexico's highly valued commercial market to charge a "Guante" (Glove). This is an amount that the tenant transfers "as sunk cost" (non-refundable) for the solitary, absolute privilege of being able to agree upon and win a coveted space amidst competing high demand, or to mixedly compensate exceptionally high structural costs. Since the "Guante" is an income "invoiced and taxed at 100% unilaterally", it does not fall under any scheme into the "Refundable" section of the actual security deposit and is totally deductible in a fiscalized manner for both accounts under different accounting treatments.

Holding Period and B2B Modality

When the contract conclusively ends and the refunds or "key handovers" arise, the landlord typically will require up to an Absolute Closing Period (60 to 90 days). In an industrial nave or tower of commercial suites, residual billings such as High Tension CFE (electricity) rates or mercantile licenses without proper deregistration (which would criminally shut down future tenants), legally justify this extended timeline for the review of administrative documents before courts.

Tenant Improvements (Adecuaciones):

Any amount will be fiercely deducted if the tenant corporation abandons minor demolitions or "drywall" partitions which it had agreed (in an "In Grey" or Shell Return Clause) to completely revert to the original shell of the premises at its own expense. If the tenant failed to demolish and clean away all traces, the landlord is civilly enabled to apply all or the highest portion of the deposit in favor of the budget to re-destroy those partitions for the next prospect.

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