A lot of key businesses and major companies have been moving their headquarters to BGC, and it seems like a large sum of real estate developments and projects are concentrated in this satellite city in Taguig. Ortigas, the second largest CBD in the metro, is also giving other business centers a run for their money, with its new supply and stock of top-grade office space, accessibility to the labor force, and its low vacancy and rental rates. Although BGC and Ortigas Center are the business address of choice for other multinational firms, giant corporations, expanding BPO companies, and other enterprises, Makati remains on top of the corporate real estate chain. It is still the prime CBD for business in the metropolis.
Center of business activities
If Ayala Avenue is considered the analogue of Wall Street, Makati CBD is said to be the country's version of New York City. Tens and thousands of establishments are found in Makati CBD alone. A large number of multinational industries, thriving local firms, expanding IT-BPO companies, and key businesses have established their headquarters and regional offices in this part of the city, making it still the financial capital of the Philippines.
Not just a business center but also a lifestyle hub for professionals
It's not only a center of business activities but also a multicultural lifestyle hub. The Makati CBD landscape isn't just defined by numerous skyscrapers and high-rise towers in the area. Over the years, the busiest business center in the metro has been transformed, with some facelifts and overhauls for a greener, cosmopolitan environment. It even has open parks that are adjacent to different buildings. The recent developments in the area inspire people here to live, work, and play in just one place. Its many residential towers and communities provide the best of metro living to Makati executives and professionals, with their top-of-the-class amenities, facilities, and architectural living space design. Dotting the whole CBD are homegrown restaurants, cafes, food strips, bars, and a whole bunch of entertainment centers. It is home to where world-class shopping malls and top luxury hotel brands, which remain unmatched by other CBD developments. Although other business districts offer pretty much the same elements, this is on a much smaller scale.
Makati's property market
Although a good number of real estate developments and infrastructure projects are in BGC, with businesses transferring to the new corporate location, Makati CBD still remains the largest property market in the metro. The Alphaland Makati Tower, completed in second half of 2013, added some 48,000 sqms. in the stock of Makati CBD, increasing premium and grade A office spaces in the area to 1,080,000 sqms. The stock will also have an additional 30,000 sqms. once V Corporate Center is turned over in the first quarter of 2014.
Makati isn't just a prime location for company headquarters and business operations but also for property investments. The average rental cost for a premium space in the area is at 1,027 Php per sqm., with a maximum rate of 1,200 Php. Grade A space has an average rental rate of 733 Php per sqm. and can reach up to 950 Php. For Grade B space, the rental cost is at 543 Php per sqm. up to 750 Php. Strong demand from the fast-growing outsourcing and offshoring industry and other firms, drove these rental rates to this level, along with other factors. Although Makati CBD has high rental and occupancy rates, it remains a top business address of choice for multinational companies and local offices because of its thriving business environment and accessibility to other amenities since it's at the heart of urban centers. With the high resale value of properties in the area, a good number of investors have built their assets here in the metro's financial center.