Makati is the Philippines’ bustling financial center, making it a center for different businesses, such as call centers, banks, law firms, fast food establishments, and real estate brokers, to name a few. In any case, it is not news that office spaces are among the most important pieces of real estate in the city, especially with the increasing demand for Makati short term rent by foreign investors wanting to put up their own business in the country.
Office spaces in Makati, though, do not come cheap, even if they did plunge almost 50 percent in value in 2008. Actually, David Leechiu, the country head of the management firm Jones Lang LaSalle Leechiu, says that Metro Manila office space costs are on the way up due to a strong need among BPO companies who are looking for low-cost and quality spaces.
He added that Metro Manila has 722,265 square meters of total office space for 2010, with 449,996 of these being holdovers from past years. In 2009, a mere 293,000 square meters of office space in Metro Manila were in use. Makati, in particular, has an office space oversupply of around 140,000 square meters, which was instrumental in decreasing rental rates from 46 to 50 percent.
Still, Leechiu thinks that the second semester of 2010 will witness the increase of rental rates due to the demand that will be created by the strong take-up of the BPO companies. He also believes Makati to run out of office spaces by the second semester of 2010, even if the city has around 160,000 square meters of office space in the Ayala Avenue area alone.
From 60 choices, the prime locations for business in Metro Manila have been narrowed down to just 46, with office spaces in Fort Bonifacio in Global City already increasing in value by around 10 percent. “All the good but cheap spaces are going away and we will be left with the expensive but junk stocks,” Leechiu said. At present, the office space rental rates in Makati is more than P650 per square meter. “So what will be left is good but expensive and junk office spaces,” he adds.
He also claims that the Philippines is seeing an increase in outsourcing firms, which often choose sites with low rental costs. “This is a good motivation for BPOs to go to the provinces and also a good motivation for property developers to build BPO buildings in the provinces,” he says.
Looking for Rent Office space in Makati? Check out OfficeSpaceMakati.com- offers information about availability of Office in Makati, as well as other things you need to know.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
