When setting up a business in Metro Manila, deciding on the right location is crucial. Despite being the most expensive areas in the capital, Makati City and Bonifacio Global City remain the most preferred locations for international companies aiming to start working in the Philippines.
Makati city has been the financial center of Metro Manila for over 50 years. The city boasts an unrivaled number of local and foreign businesses, as well as international banks and embassies.
Makati city offers a variety of buildings and office spaces, and provides countless goods and services which will easily satisfy both Filipinos and foreigners. Makati city is relatively easy to access from other parts of Metro Manila, but traffic within the city is often very heavy.
Office availability in Makati’s central business district (CBD) market rose slightly to 2.14% during the third quarter of 2015 due to some vacancy increases in grade B buildings. On the other hand, grade A office buildings located within Makati are “practically fully leased out,” and “Makati rents are seen to strengthen up to 2017 due to lack of new completion of grade A buildings, as vacancy levels are seen to remain below 3 percent” as stated by Rick Santos, founder, chairman and CEO of CBRE Philippines.
Bonifacio Global City
Once a simple military base, Bonifacio Global City (BGC), or Fort Bonifacio, has become one of the most high-end neighborhoods for both businesses and private rental.
BGC offers high-quality infrastructure, larger office spaces and reliable internet connectivity. Commuting within BGC is also easier than within Makati City, although it is can be somewhat difficult to reach from other cities across Metro Manila (only two mains roads connect it to the rest of the metropolis.)
According to the Research and Forecast Report released by Colliers International, Fort Bonifacio has established itself as the next CBD after Makati City, attracting numerous multinational companies. Apart from banks such as JP Morgan and Deutsche Bank, two of the largest fast-moving consumer goods companies, such as Procter & Gamble and Unilever, are expected to relocate their operations to this area as well.
Overall, the Philippines offers the lowest office rental rates in Asia Pacific. Average office rental rates in Makati City are estimated at between P600 and P900 a square meter a month; in BGC, P600-P800/sq.m.; in Pasig City, P500-P700/sq.m., Quezon City, P400-P600/sq.m., and in Manila Bay area, P500-P550/sq.m.
If you wish to establish a company in the Philippines, don’t hesitate to contact Triple i. With more than 200 companies registered in the Philippines, we strive to help our clients succeed in setting up their business.