Leasing an office space is probably one of the milestones for
any start up business. Many studies and researches have been
linking the productivity of employees as well as the cultivation of
a company culture rooting from the existence of traditional office
spaces. While it should be one of the top priorities and goals of
start up businesses to finally acquire an office, it is important
that business owners know where to locate according to their needs
and budget in mind.
Many factors contribute to the lease rates of commercial offices
in the Philippines, especially in Metro Manila CBDs. In 2019,
the average Grade A office lease rates in the four major
CBDs range from Php. 691 per sq m per month (Ortigas Center) to
Php. 1,104 per sq m per month (Makati CBD).
Location serves as the biggest factor why these lease rates
differ. The ease of accessibility through public transportation is
one of the most crucial considerations of companies in choosing
where to locate their office, hence it becomes a great determinant
of lease rates. Additionally, the amenities and establishments
nearby to the office space are also factored in.
Many start-up companies are venturing to set up their
office in BGC because of availability of flexible office
spaces, stable vacancy rate and the good quality of work
environment due to its proximity to lifestyle hubs in the area.
However, such companies should also consider the risks in
locating in this district such as lack of public transportation
options since BGC operates its own bus system and jeepneys are
restricted to ply only certain routes.
Another factor that determines the lease rates of offices is its
size and availability. Among the four districts, Ortigas Center has
the lowest rental rates due to the quality of current stock. Office
spaces for lease in this area are the lowest among the four ideal
office locations in the metro.
However, we expect a significant acceleration in rents in the
district as new supply improves the quality of its overall stock.
Ortigas Center is also an ideal district for start
ups to consider since the quality of stock is expected to
improve in the coming years. It is also competitive when it comes
to accessibility as major roads and transportation means (EDSA, MRT
and the future Metro Manila Subway Project) transverse it.
Since the emergence of co-working spaces and companies that are
more open to remote employees and virtual meetings, Alabang
becomes an emerging ideal office location for star up
companies and businesses in the metro, especially for
those who are targeting to generate labor pool from Southern
Manila, such as Laguna and Cavite. Traditional office spaces in the
area averages Php. 671.63 per sqm per month. More
technologically-savvy and equipped start up companies may opt to
lease serviced offices instead.
Need help in finding the ideal location for your start up
business? Contact Philipp at 403-5509 or thru