Leasing an Industrial Building in Ciudad Juárez: 7 Clauses U.S. Tenants Often Miss

For U.S. manufacturers, logistics operators and investors leasing industrial space in Ciudad Juárez.

Most industrial leases in Ciudad Juárez are drafted in English, priced in U.S. dollars and modeled on U.S. forms. That makes them feel familiar. But the lease is still governed by Mexican law, enforced by Mexican courts and registered (or not) under Mexican rules. These are the seven clauses we most often see U.S. tenants sign without a second look.

1. Currency and exchange rate

Rent in dollars is standard, but under Mexico’s Monetary Law a payment obligation in foreign currency that is to be performed in Mexico can generally be discharged in pesos at the exchange rate in effect on the payment date. If you want certainty, the lease should say which rate applies (typically the FIX rate published by Banco de México in the Federal Official Gazette), how invoices (CFDI) will be issued, and what happens with rounding and late-payment differences.

2. Prevailing language and governing law

Bilingual leases are common. Decide which version controls if they differ, and make sure the Spanish text is a faithful translation, because a Mexican judge will read the Spanish. A clause choosing Texas law for a building in Chihuahua rarely helps: matters affecting the real estate itself will be decided under local law.

3. Notarization and registration

A private lease is valid between the parties, but a long-term lease is far more secure when signatures are ratified before a Mexican notary and the lease is recorded in the Public Registry of Property. Registration is what makes the lease enforceable against a future buyer of the building or a lender that forecloses on it. For multi-year commitments and major tenant investments, it is cheap insurance.

4. Permits and land use

Who is responsible for the land-use license, the building’s occupancy and civil-protection approvals, and environmental authorizations? Many U.S. tenants assume the landlord delivers a “permitted” building, only to find that operating permits for their specific use are their responsibility. The lease should list which permits the landlord guarantees on delivery and require cooperation (signatures, documents) for the tenant’s own filings.

5. Maintenance, structure and NNN reconciliation

“Triple net” does not have a fixed meaning under Mexican law. Spell out what is structural (roof, foundation, slab, main systems) and stays with the landlord, what the tenant maintains, how common-area and property-tax charges are estimated, and the deadline and documentation for annual reconciliation. Disputes over reimbursements are one of the most frequent sources of litigation between landlords and industrial tenants.

6. Improvements and surrender

Define which improvements the tenant may remove, which become the landlord’s property, and the exact condition in which the building must be returned. Without a clear restoration standard and a joint move-out inspection, tenants can face deductions from the security deposit or claims well after they leave.

7. Default, eviction and dispute resolution

Check the cure periods, the events that allow early termination and whether disputes go to Mexican courts or to arbitration. Note that a landlord cannot simply change the locks: recovering possession requires a court proceeding, and the guaranty structure (security deposit, guarantor or bond) will determine how quickly each side can actually be made whole.

Before you sign

A Mexican-law review of an industrial lease usually takes days, not weeks, and is far cheaper than renegotiating after the tenant has invested in the building. We review leases for U.S. tenants and landlords in Ciudad Juárez and explain the issues in plain English.

Schedule a call with our team →

This article is general information about Mexican law as of its publication date and is not legal advice. Roldán Venegas, S.C. is a Mexican law firm. Our services consist of advice and representation on matters governed by Mexican law, before Mexican authorities and courts. We do not offer legal services under U.S. federal or state law through this website. Contacting us does not create an attorney-client relationship. Attorney advertising.

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