Whether you’re a startup, a growing business, or an established company looking to expand, understanding the dynamics of renting is crucial to finding the best space for your business needs. And the primary consideration is the rental costs.
But getting an office space for rent in the Philippines shouldn’t be too costly or scary. In this post, you’ll learn how to find the space appropriate for your business and your budget.
Factors that Affect Office Space Rental Costs in the Philippines
There are several factors to consider before getting an office rental.
They greatly affect the cost of the space you will get for your business. So, it is important to know about them to get the best office space for rent.
Office Location and Size
Location is the primary factor that will affect the cost of office space for rent in the Philippines. Every other factor will also depend on where you rent for a business. The closer you are to the metro or a central business district, the higher the price of rent and maintenance fees.
For example, in Ortigas in 2023, lease rates can range from PHP600-800 per sqm per month with a 5% possible escalation per year. In comparison, Makati has about PHP1,000-1,500 per sqm per month.
While costs will soar as you go nearer a business district, possible sales will also increase as you’ll have more access to potential clients and deals. But this is still highly dependent on your business. Being near schools and universities is strategic for tutorial or review centers.
Office Density
You’ll also have to think about the maximum allowable density. This refers to the number of people allowed to stay in the office rental. So, the more people you have or expect to have, the bigger the space and the more costly your rent can be.
Office density is directly proportional to the office size. And the cost per sqm increases depending on your location.
Now that many employees are back in the office, here are Back to Office Tips to Make Your Return Less Stressful.
Office Setup
Some office space for rent comes bare, meaning you’ll have to also spend for fit-out and furniture. The cost can come up to PHP25,000-28,000 per sqm.
This price will also depend on what equipment you need for your business. If you’re a tech company, you’ll probably need high-end computers, which also adds to the cost of renting a space as the equipment uses space and consumes utilities. Whereas a tutoring business will only need a bare minimum of comfortable desks and chairs.
But there are also types of office spaces for rent in the Philippines called serviced offices. In this rental, the common setup is already included in the rental. So, you may be spending more on the rent but less on the office setup.
Lease term
How long you need to rent the space will also affect the cost. The common lease term in most office space rentals is 5 years with a 5% yearly escalation. Typically, the shorter the lease term is, the more expensive a space can be, so this is something that you need to consider when renting a business space.
Utility fees
Another unavoidable cost is utility fees.
Utility fees cover power, water, internet, and security costs. Power and water bills are not affected by location. But internet fees can go higher if you need a faster, decent speed for your private office in the Philippines. In general, an internet subscription is more expensive for businesses because it includes extra bandwidth for seamless transactions.
Other factors that add up to the cost of an office rental are maintenance fees, occasional staff hiring for cleaning, and IT work.
Types of Office Space Options Available in the Philippines
There are several types of office space options available in the country. But the main two we’re focusing on are serviced and traditional offices. They are the most common terms you may encounter when looking for an office rental.
Serviced Office vs. Traditional Office
Traditional office space is directly leased from a landlord or property owner. This is what we envision when we talk about an office. When we rent this space, we get it completely empty. And we’ll need to fill it out with our own furniture and equipment.
The traditional office space is best for companies looking to have control over the office layout, design, and branding. It is also best for businesses looking for stability as it costs more due to a longer, fixed lease term.
In contrast, a serviced office is an already furnished space featuring ready-to-use infrastructure. They already have the furniture and equipment you need to run a business, with internet connectivity and sometimes meeting rooms.
This type of office space for rent is best for startups and small businesses because they have more flexible leasing terms. Depending on your business needs, you can often rent them on a day-to-day basis or for a few months. Often, several serviced offices reside in one building, so you’ll also have networking opportunities with other businesses.
Tips on How to Save on Office Space Rental Costs
With all the costs we’ve listed above, it may be daunting to branch out and look for an office rental for your small business. But it should not always be the case. With these tips, you can get the best space you need on a budget.
- Don’t be afraid to negotiate your lease terms.
- Consider a serviced office for your startup or small business.
- Choose an office space for rent near CBD and not directly in the CBD.
- Invest in technology and amenities that automate some tasks to save on space and labor costs.
- Only buy the equipment you need.
The best tip for saving on office rental costs is to spend wisely. You don’t need to buy extra computers or other equipment until you need them. And you don’t always have to be exactly in the business district, as long as you’re in a commutable location for your employees and clients.
M Spaces: Your Affordable Serviced Office Space for Rent in the Philippines
The final tip is to choose a serviced office space when you’re only starting to grow your business. This will save you loads because you no longer need to pay for more furniture and equipment, and you’ll no longer spend more time getting your space fitted with a decent internet connection.
M Spaces is the affordable serviced office you need for your small business and startup. It is conveniently located in Ortigas, making it an easy commute for employees and clients from the north and south of the metro. You can choose from Micro Office (4 to 5 seats), Medium Office (6 to 7 seats), and Mega Office (8 to 12 seats) and get flexible lease options that fit your budget and needs.
You can check out M Spaces on Facebook and Instagram. Or contact us or email info@mspacesph.com for more information about our services and office space offerings.
