Las Cruces and Dona Ana County have been “discovered” as a growth market for a wide variety of business expansion projects. The area offers a temperate year-round climate with over 330 days of sunshine, the state’s second largest university and a young, growing labor market. One of the major factors in its attractiveness is the competitive cost advantages it offers.

Labor costs in the Las Cruces NM MSA are well below national averages. Median wage rates for skilled production workers are 18% lower than the national average and office and administrative support median wages are approximately 20% lower than national averages. Fringe and mandated benefits are also proportionately lower in New Mexico than the national averages. Unemployment tax is 2% and workers compensation tax is $2.56 per $100 of payroll.

New Mexico has one of the lowest property tax rates in the nation. Effective property tax rates in Dona Ana County for non-residential property (real and personal) average 1.03%. Inventory is not subject to property tax. Tax abatement incentives are available through both the state and local governments for a wide variety of projects.

Land, building and construction costs in Dona Ana County are competitive with most markets throughout the country. According to 2005 SIOR Comparative Statistics, land costs range from $1.00 to $3.00 per square foot. Lease rates for industrial buildings range from $3.00 to $3.60 per square foot, and office lease rates vary from $10 to $15 per square foot. Total construction cost index (Means Construction Index, 2005) is 83.4.

Please contact MVEDA staff to develop cost-comparison models based your specific project requirements and assist you in your business expansion decision.