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Where is the best location in Metro Manila to set up an office? Which is better, Makati or BGC? In this week's episode, Karen Golez, Assistant Manager of KMC MAG Group's Commercial Leasing team, answers some of the most common questions about leasing office space in the Philippines.
Looking for more tips on setting up shop in the Philippines? Talk to our real estate consultants here: Contact us.
Hi there! Thanks for tuning in to KMC Expert Talks. I'm Karen Golez, Assistant Manager in KMC MAG Group's Commercial Leasing team, and today I will be answering some of the questions frequently asked by clients looking to set up shop in the Philippines.
1. Where is the best location in Metro Manila to set up an office?
I would say that the best location to set up shop in Metro Manila would be in the CBDs. CBDs have the supply, infrastructure, and access to labor force that every office needs. Makati is the popular choice, though Bonifacio Global City is quickly becoming the go-to city since it has more supply, especially premium and Grade A office spaces.
2. Which is a better area, Makati or BGC?
Both areas have its own set of advantages, and choosing really depends on your company's preference. Makati has older buildings, but it offers better accessible to public transportation compared to BGC, since jeepneys and city buses ply Ayala Avenue and Makati Avenue.
BGC, on the other hand, has more supply since it is a newer business district. Compared to Makati, BGC will also have more Premium and Grade A office spaces that are sustainable and environmentally friendly.
3. How is the current office market? Any insights/trends you'd like to share?
The current office market is on an upward trend. Supply is low and demand is high, therefore Landlords dictate the pricing and conditions. Due to this low vacancy, there has been a surge of rental increases and shortage of availabilities to offer would be tenants.
4. Any advice on choosing an office space location for companies looking to start business in the Philippines?
For a start up business looking to test the market out, it is advisable to locate in a serviced office/plug and play initially. Doing so is cost effective and minimises the risk of capital costs while establishing presence and gaining momentum. Once the company has gained track and/or it has an established presence, then ideally you would want to settle in a permanent office.
In choosing a permanent office space, it is advisable to locate in a building wherein the Developer/Landlord and the Admin/Management have good track records. It is also important to also select newer buildings because these are equipped with modern and cost-efficient technologies compared to the older ones. Sometimes, a common mistake of would-be tenants is choosing an older building with cheap rent versus a newer building with higher rent. They usually end up realizing the operating costs especially for AC and maintenance are high because older buildings run on centralized AC versus the newer VRF system.
5. What about in choosing a location?
In choosing a location, it is important that you consider the accessibility of the building to public transportation, support establishments like restaurants, banks, etc. This is a major factor for would-be employees. In the CBD areas of Metro Manila, the most accessible in terms of these aspects are Makati and Ortigas.
And that is it! Again, thanks for watching. Should you have more questions about leasing office spaces in the Philippines, you can reach me at +632403-5519 or by visiting our website, kmcmaggroup.com.