Commercial Real Estate

Commercial spaces are properties instituted for use for commercial purposes. These commercial properties are rented, leased, or bought to make money. Companies typically have their property, but most businesses prefer to hire from the lessor for an extended period. When purchasing or leasing commercial property, the buyer must first survey by searching for the best location, analyzing if the business category fits the market range, and securing the property documentation. There are many things a commercial space is able to do, such as an office space, a retail store, and an industrial space. Real estate investors suggest investing in commercial properties. They believe it is wise because of its high appreciation value, producing a passive income. Property rentals are popular and a top market in Puerto Vallarta. There are many properties to choose from because of the tourist and vacation spots. These are large vacation homes, condos, lodges, and other long-term rental houses in Puerto Vallarta.

Regarding whom to rent properties in Puerto Vallarta, it varies from the different situation or depending on the landlord’s requirements. In most cases, tourists are allowed to rent a property, especially condos, apartments, and houses. The most common condition is proof of identity and, sometimes, an advance deposit. For foreigners renting property for a long time, other than the proof of identification, the renter must provide an explanation of residency (FMM form) that Mexican authorities offer in their office. For the most part, commercial properties vary in price depending on the space, location, purpose, and amenities.

Commercial space is an alternative term for Commercial Real Estate​​, Investment Property, or Income Property. It is named that way because the type of Business, Real Estate Investment, generates income or profit from capital gains or rental income. Commercial space types include office space, retail space, industrial space, residential space for multi-family rental, warehouse, leisure space, healthcare space, hotel, lodging space, and luxury homes. It is a commercial space if the property has more than one unit. In urban locations, commercial spaces in a building placed strategically, such as office spaces, are typically placed starting from the second floor and above. In contrast, retail spaces and restaurant spaces are on the first floor. These commercial spaces and properties are regulated to be in a specific commercial zone by the local authorities.

Yes, there are commercial spaces in Puerto Vallarta. There are restaurant, industrial, hotel, lodging, retail, and multi-family residential spaces. The available commercial areas of Puerto Vallarta have been the hotels and lodges because of the demand for temporary accommodation for tourists and vacationers. The second is retail spaces. It is the higher percentage of revenue makers in Puerto Vallarta and the rest of Mexico. The third is restaurant spaces strategically placed in the highly-dense area of Puerto Vallarta and available in different zones. These zones include the Romantic Zone (Zona Romantico) and Old Town to Downtown or “Centro,” and the Hotel Zone to Marina Vallarta, which locates high-end hotels and luxury homes.

Below are the ten types of commercial spaces in Puerto Vallarta.

1. Office space: Office spaces are where the business plan is discussed and presented. 
2. Industrial use: Industrial use spaces are versatile properties intended to use as a production space for products sold to the market. 
3. Multi-family rental: Multi-family rental spaces are considered commercial spaces that provide shelter for the family by sharing common facilities like laundry areas or garages.
4. Retail spaces:  Retail spaces are used in a retail business to sell products or services.
5. Hotel and Lodging Spaces: The hotel and lodging spaces are properties designed to accept temporary accommodation.
6. Restaurant Spaces: Restaurant spaces serve as restaurant or cafés areas

 because of their facilities, like the kitchen and pantry.

7. Healthcare Spaces: Healthcare spaces are medical spaces for clinics and birth homes.
8. Warehouse Spaces: Warehouse spaces are properties designed to store business properties and products as physical inventory.
9. Leisure Spaces: Leisure spaces serves as leisure areas for people wanting to relax or need sports activities.

Luxury Home Spaces: Luxury home spaces are properties with high-end facilities located in high-value land or condominium buildings.

Commercial spaces affect the economy of Puerto Vallarta positively. The need for hotels, restaurants, and luxury houses that guests need to rent benefits the place, especially its municipality, because tourists visit every month. The more infrastructures, the more the government gain through its taxes and permits. According to the Economic Census of 2019, The retail business was the most concentrated, with more than 5,608 units, while Hotels and Restaurants we already in 2,670 units, and the rest of the commercial properties except the government were 2,220 units. Tourism is the primary economic sector of Puerto Vallarta, and the government support and plays a prominent role in tourism. The tourism sector of Puerto Vallarta directly accounts for 8.5% of GDP, with 5.8% full-time employed in the formal sector, while 77.2% are for service exports. Puerto Vallarta is one of Mexico’s best tourist destinations, with almost half of the town’s economic activity. Including cruise ship arrivals, Puerto Vallarta is third among the top destinations, bringing in more than $35 Million annually.

Commercial spaces in Puerto Vallarta are found mainly within the center district or the urban areas. There are zoning in Puerto Vallarta. Most commercial rooms in Centro or the downtown area, like Zona Hotelera, or Hotel Zone, are located in most hotels and lodges. Zona Romantica, or Romantic Zone, is a place of modern and high-end establishments with hotels and restaurants. Finding commercial spaces in Puerto Vallarta is complex, primarily if not local. Asking here is crucial, and it leads to not the ideal commercial space or location that fits the criteria. There are zones in Puerto Vallarta that anyone should start and learn about each zone and what types of structures are there. These seven zones are in Puerto Vallarta. It is essential to know what these zones specify and what things to expect when in these zones. The North zone is part of Banderas Bay, including Punta de Mita, La Cruz de Huancaxtle, and Bucerías. The north zone is a popular destination, especially for divers. It is the best diving spot in Puerto Vallarta. It is known to have yacht clubs, restaurants, and spas. Hostel and other lodging accommodations are all over the place in the zone. Nuevo Vallarta is still a juvenile part of Banderas bay; just like Cancun, it inspired the development of Nuevo Vallarta to take advantage of Puerto Vallarta’s reputation. Nuevo Vallarta is commonly sold as Puerto Vallarta, even if it is almost an hour away from the Puerto Vallarta downtown area. The place has a gate-like resort concept, with all the package tourist must have, including onsite restaurants, shows, and other activities. Marina Vallarta has cruise ships, sailboats, and yachts. There are shopping centers in Marina Vallarta, and most commercial spaces for sale and lease are there. Hotel zone, or Zona Hotelera, is the location of the upscale and more prominent hotels with modern high-rise apartments found on the main street of Francisco Medina Ascension Avenue, just alongside the beach shown on the Puerto Vallarta map. The hotel zone has many foreign store brands and two-level shopping malls. Downtown Puerto Vallarta, locally known as “Centro,” means “The center” it is the continuation from the south of the hotel zone from Brasília street down to the southern arm of the Cuale river. Downtown Puerto Vallarta is one of the places that should not be taken off the list because it features the local colonial-era buildings with red tile roofs. The “Centro” provides a different atmosphere that won’t be anywhere else in the world, with a bronze statue gallery and sculptures in the Malecon. Romantic zone or “Zona Romantico” is famous among ex-pats because of the amenities and packed full of activities and Mexican culture. The Zona Romantica has many restaurants and bars with many budget hotels, hostels, and boutique hotels, and the distances are not that far. The South zone is the south of the Romantic zone and a beach zone from Hyatt Ziva and Las Estacas, where the beach is called Conchas Chinas beach. The south zone is more along the highway road.

Yes, it is hard to find commercial space in Puerto Vallarta. However, there are listings available on realty websites that anyone should look at before hunting directly into the city. However, finding a property is tricky. Zoning permits are needed under the Code of Federal Regulation, though it is easy to obtain as long as the build papers have complied with the regulations. Permits are those requirements once the buying or renting is complete.  Furthermore, consider the pressure of competing with other commercial establishments in the market when finding commercial spaces in Puerto Vallarta. It is best to seek advice from realtor advisors like mexlife.com/ to foresee the unnecessary things that should be prevented and lessen the difficulty of finding commercial space.

The platform to use for finding commercial spaces in Puerto Vallarta is mexlife.com/. Mexlife provides a list of commercial spaces from office space, industrial use space, retail space, multi-family rentals, healthcare, hospitals and lodges, restaurants, warehouses, leisure spaces, and luxury home spaces. The platform provides pictures of the commercial space, including the interior image situation, the size by area, the price, and real-time satellite map location. Mexlife is one of the ​​Best Platforms for Finding Property in Puerto Vallarta, not only for commercial spaces but others too, such as condominiums and beach houses.

The average prices of commercial spaces in Puerto Vallarta range from $300,000 to $10,000,000, depending on their location. The prices of commercial spaces have gone up in value because of the high volume of tourists in Puerto Vallarta. In 2019 a record 4.5 Million tourists visited Puerto Vallarta, while in 2020, it rose to 5 Million visitors. In the first half of 2022, over 3 Million visitors are touring Puerto Vallarta, these numbers are pretty fascinating, and it only means that the tourism industry will help the revenue of established commercial spaces. A simple commercial property with 1000 square feet (ca. 93 square meters) of land area could be priced at $300,000, while leasing could be $54,000 annually or $4500 monthly. Prices and inclusions vary depending on the owner or landlord. 

Yes, it is better to buy commercial spaces in Puerto Vallarta. However, it is best to lease or rent spaces for as long as the type of business is reasonably profitable if the prices are entirely high for the budget. The prices of the Puerto Vallarta real estate market have been promising, even after the post-COVID19 pandemic. Puerto Vallarta is a highly desired place to live in because of the new setup to work from home. Commercial or residential properties are both suitable investments. However, acquiring commercial space as an investment has more financial gain than residential properties because commercial properties generate income, such as rental apartments, multi-family rentals, and retail space for tenants. In addition, accepting rents with about 5-8% yields is a good start. The division of the annual rental income is by the total investment for such property to get the yield value. It is the method on how to compute it to get the yield value. The yield is typically higher than residential properties, around 5% to 10% and 1% to 3% for residential. The advantages to leasing or renting commercial space include access to more liquidity, fixed monthly costs, and tax breaks for property expenses. While the downside of leasing or renting retail space is that there is no benefit for appreciation or no equity, there is an inability to collect for passive income, and high rent expenditures.

Aside from all the requirements gathered, there are steps that the investor or buyer should undergo. Here are the Tips and Requirements when Buying Property. First is to look for a reputable sales agent that can provide references and knowledge in buying or leasing property. They must be able to offer more options outside their listings and should answer all the client’s questions. Second, find a lawyer for public notary requirements, the entire process needs a public notary for the documents until the occupancy is released. The third is to provide the necessary documents from the seller’s title, property registration, Non-lien certificate, updated tax certificate, and appraisal. The fourth is to get an estimate of all the closing costs from property transfer tax, foreign affairs permit, Trust (Fidei Comiso), Bank trust fees, and notary fees. Last (for foreigners), because of the rule or zoning restriction for foreigners to acquire specific land or property, the exception is for foreigners to apply for Fidei Comiso or Bank Trust. Three parties are involved in the trust process; the trustee is the seller or the owner, the Mexican bank is the trustee, and the trustor is the buyer who would benefit from the title.

Yes, a non-resident can rent a commercial space in Puerto Vallarta. The non-resident should provide the necessary documentation and proof of renting commercial spaces in Puerto Vallarta. According to Mexico’s law, Foreigners are not eligible to buy properties on Puerto Vallarta coastlines. According to the rule, foreigners are not allowed to acquire properties 62 miles (99.78 kilometers) from the border and 31 miles (49.89 kilometers) from the coast. However, in the case of renting, the Mexican government of Puerto Vallarta only asks for documentation according to the application made in the local country of the foreigner or non-resident before visiting Puerto Vallarta. The Mexican consulate in foreign lands should be able to provide documents allowing a non-resident to lease or rent properties in Puerto Vallarta. The documentation acquired from the consulate must be provided to the local authorities to release legal papers and then pay the necessary fees and tax when foreigners or non-resident visits Puerto Vallarta. A tourist visa in Mexico provides up to 180 days. A foreign lessee should process them immediately before the visa expires. Once the foreigner receives a temporary or permanent residence permit (green card), the next step is to get authorization to work or conduct business activities in Puerto Vallarta. Hiring an accountant is essential to obtain the Registry Federal Contributor (RFC) tax identification number.

No, the locals, especially Mexican nationals in Puerto Vallarta, do not rent commercial spaces. Most of the local Mexicans own most of the lots and properties in the city. However, some properties are already owned by foreigners and are known as foreign locals that have decided to live and work in Puerto Vallarta. The local authorities of Puerto Vallarta allow foreigners to buy properties and commercial spaces through a Trust (Fideicomiso) or a Mexican corporation. The Trust works by involving three parties, the trustor, the trustee, and the beneficiary. The trustor is the owner of the original property. The trustee is the bank, while the beneficiary is the person who should receive the benefits of the Trust.

Commercial space can be an office space, a retail space, or a multi-family rental space. These spaces can generate revenue if essential things, such as water supply and electrical fixtures, are well maintained. A commercial space allows a business to do day-to-day activities to generate income as its purpose. Retail space is not limited to a store, restaurant, or laundry service business; a space can generate revenue by letting someone rent and pay for it monthly. Multi-family rental is a commercial space that produces monthly income while staying in one of the vacant units. Acquiring retail space in Puerto Vallarta is an excellent opportunity because of the high volume of tourists yearly, even after the pandemic.

Yes, Puerto Vallarta is safe. Puerto Vallarta is known as the safest place for international tourists in Mexico. Travel magazines usually feature Puerto Vallarta as the friendliest city. The local authorities of Puerto Vallarta ensure the safety of tourists by disseminating law enforcement in the city day and night. However, even though Puerto Vallarta is known to be a safe tourist destination, travelers and tourists should still exercise being aware of the surroundings to prevent unwanted things from happening. Puerto Vallarta is a small city, and it is rarely featured in the news regarding Puerto Vallarta crime rate and other violence.