Made up of more than 7,000 islands the Philippines is a beautiful archipelago in the Pacific ocean, with the majority of the population living on just eleven of its islands. Serving as a Spanish colony for over three centuries and later the ruled by the United States, influence from these countries still remains today.
With a population of just over 96.5 million people who speak both Filipino and English as their official national languages, the Philippines is well-visited. With this volume of people, rental rates in sought-after areas of the major cities can be relatively high. The office rental market is influenced by both foreign and domestic investment and is changing at a rapid pace.
Keep reading to learn more about the office rental market in the Philippines and what the current situation means for your business.
Change is Happening Fast
The large number of Filipinos working overseas sending money back home has resulted in a big shift in the real estate market in this island nation.Tourism revenue is also on the rise and the booming business processes outsourcing sector, which has created a huge amount of jobs in a relatively short space of time, is leaving Filipinos with more disposable income while also creating a higher demand for office space in the cities.
Seeking Alternative Leasing Options
In light of the rapid changes, many people are looking for alternative leasing options in the major cities. With virtual offices and serviced offices offering flexible terms and no long-term lock-in contracts, more businesses are looking into these alternative options and with good reason.
Vendors offering virtual offices and serviced offices in the Philippines offer great value compared with the often extortionate prices real estate agents are asking for. Located in prestigious areas of the city with full back office support, these options are quickly becoming the go-to for emerging businesses. Vist www.servcorp.com.ph/en/ to find out more about how you can utilise these facilities for your business and avoid paying high rental rates.
Demand Continues to Rise
Metro Manila has experienced a 4-10% rise in rental rates with an average vacancy rate of just 4% in all of the business districts combined. It is reported that approximately 1.2 million sqm of office space became available in 2017 with more than 23% of the space committed for lease 6 months in advance. Furthermore, rental prices are predicted to rise in parts of the city by 12% year-on-year.
These figures go to show how much office space is in demand and why it is crucial to utilise the excellent virtual and serviced office options available throughout the city.
Moving to Makati
Sixteen smaller cities come together to form the capital as we know it, Metro Manila. One of these cities is Makati, the financial centre for the country. It’s home to the highest concentration of corporations, both foreign and domestic, in the entire country and is the preferred site for office rentals. It’s also where all the major banks and financial institutions are located in the city.
Here, you will find all kinds of rental options including virtual offices, meeting rooms and serviced office facilities at the prestigious 6750 Ayala Avenue building. This modern building is the most accessible and prominent building in the Central Business District (CBD) of Manila.
Stay Within Your Rental Budget
With the current rental climate in Manila, it can be very difficult to find an office space that will work within your allocated rental budget. However, with serviced office spaces and virtual offices, you will get much more bang for your buck.
Operating your business from a prestigious address in the city speaks to potential clients and investors in more ways than you might realise. Being in an accessible location means you can meet with clients easily and deliver what they need in an efficient and effective manner.