The simple element that follows will be the negotiation and escrow deposit, eventually triggering due diligence. During this time, we begin to discover whether the property will really work for the concept that your company has in mind. At a base level, we need to determine that the meets and boungs will allow the concept your brand is putting in place. In Mexico, the requirements that dictate your building envelope are called the COS & CUS. These two numbers, which are set by the municipality, will determine your buildable opportunity, as dictated by each individual government agency.

The COS (Coeficiente de Ocupación del Suelo, or in English is known as, Soil Occupancy Coefficient) is the number set forth by the Urban Development department that tells you the arithmetical relation that exists between the surface constructed for the first floor of your structure and the total surface of the land or property where the project is located. The number provided will be a factor that is multiplied by the total surface of the land and provides a maximum buildable surface area. Each municipality is different. As an example, a particular region in Baja California Sur provides a coefficient of 0.8. For terms of discussion, let’s say our property is 1,000 M2. This would allow an area of 800 M2 to be built. The formula is as follows:

1,000 M2 x 0.8 = 800 M2

This essentially states that 20 percent of the land will be left available for use as green or open areas. Remember that each municipality varies as does the time that the permits are requested. Each company needs to submit a Dictamen de Trazos, Usos y Destinos Específicos to Dirección de Planeación Urbana del H. Ayuntamiento. These specifications are also posted in the Constancia de Compatibilidad Urbanística, managed by the Dirección de Desarrollo Urbano, Ecología y Ordenamiento Territorial.

As a correlation, the CUS (Coeficiente de Utilización de Suelo, or in English is known as, Soil Use Coefficient) is the relationship between the total area of the property and the total surface area of the project, which is essentially the buildable area that covers the ground floor and the upper floors. When you multiply this number by the total area of the land, it will provide the maximum number of square meters that can be built on a lot, covering all the levels. As an example, take the same size land as above and consider a CUS of 1.6. The total buildable surface area will be as follows:

1,000 M2 x 1.6 = 1,600 M2

The COS and CUS vary according to each area of the municipality. Most areas in popular tourist destinations with high density will have higher coefficients, while residential areas will have lower coefficients in an attempt to keep the density lower.