If you are a start up business or office working with a tight budget, I suggest that you locate in Ortigas, most especially if you are looking for a decent space that doesn't require a high rental rate.
Hello! Welcome to KMC Expert Talks. I am Paul Ablan, KMC MAG Group's Senior Associate for Corporate Real Estate, and for today, I will be discussing one of the top central business districts in the Philippines, Ortigas.
1. Give an overview of Ortigas commercial real estate.
Ortigas is the second largest Central Business District next to Makati. It is bordered by three cities - Pasig, Mandaluyong and Quezon City. Its proximity to the labor force from the North (Pasig, QC, and Marikina) as well as from the South (Taguig and Parañaque) gives it a geographical advantage that a businesses or BPO hubs need. The district is also accessible to major transportation hubs, malls, hotels, and other support services.
2. What are the current trends in office space leasing in Ortigas?
In terms of square meters, Ortigas is still the second largest CBD in the country. Earlier this year, Ortigas experienced a significant increase when new supply was delivered by Robinsons Cyberscape Alpha, Robinsons Cyberscape Beta, 45 San Miguel Building and Marco Polo Ortigas. This pipeline of which will continue to increase by end of 2014 with the rise of 2 more buildings: Rockwell Business Center Tower 3 and Estancia in Capital Commons. These additional supply would pull Grade A offices vacancy up by 11.8%. in Q2/2014. Current rental rates average at Php 588 though these have not reflected the added supply, rental growth is expected to stay modest.
3. What are the frequently asked questions by clients leasing office space in Ortigas?
One of the more common questions concern the technical aspects of the building, such as if the buildings are fiber optics ready, which telcos are available, what is the floor loading capacity, is there enough riser space, is there backup power?
Ortigas' stock can cater to these requirements, it's only a matter of finding the right building. Another frequently asked question is about the transportation access here in Ortigas. The city is actually very accessible to the labor force, since it is close to the MRT and major malls SM Megamall and Robinsons, ensuring access to several jeepneys, AUVs, and buses.
4. What are the benefits and downsides of locating in Ortigas?
Ortigas rates are the cheapest among the three CBDs, especially for a fairly new building located in a CBD area. The city also attracts labor pool from top universities Ateneo and UP. as well as labor pool from the North. Compared to Makati, Ortigas is less congested,and traffic is not as extreme since it is smaller. Securing business and tax permits is also not as expensive as Makati and BGC.
5. What is your advice to businesses looking for office space in Ortigas?
If you are a start up business or office working with a tight budget, I suggest that you locate in Ortigas, most especially if you are looking for a decent space that doesn't require a high rental rate. Locating in Ortigas will also allow you to attract applicants from the north, particularly fresh graduates and young professionals.
And that wraps up today's episode. I hope I was able to help budding businesses and companies looking for information about Ortigas. In case you need further advice when locating to the Philippines, you can contact me at 02-4035519 or by visiting our site, kmcmaggroup.com. Again, I am Paul Ablan, thanks for watching and I hope to see you around.