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5 Factors to consider in looking for condo-offices

Posted by graham on August 16th, 2013 in Business Trends in the Philippines

The growth of the BPO industry as well as the tourism sector of the Philippines have spurred a higher demand in real estate, mainly condominium units that are located in prime locations around the Metro. These condominiums, both residential and commercial, increase the growth rate of investments in real estate.

Growing businesses in the Philippines usually start in a smaller space before eventually expanding their offices and increasing the number of their employees. In starting up and looking for an ideal office space to establish your footing in the Philippine economy, here are a few examples of certain considerations that you should keep in mind.

 

1. Location

In the Philippines there are around 19 emerging business districts in Metro Manila. The 3 primary business districts located in Metro Manila are: Makati City, Bonifacio Global City (BGC) and Ortigas Business Center.

BPOs in the Philippines are always in areas where potential employees and/or clients are located, or are nearby. The best strategy for companies setting up new offices in the Philippines would be to go where the talent pool is.

 

2. Ownership Structure 

This is dependent on if you will be owning the space or just renting. In preferred locations, expect that there would be limited areas where you could get the opportunity to set up.

In getting an office space, make sure that you always have a solid plan and be prepared to do transfers in cases where this is an extension of your home base. Consider estate and succession planning to ensure that the property will be passed on smoothly, especially in the instances where you might want to relocate.

 

3. Capacity to maintain the property

Physically maintaining an office space can be a challenge depending on the agreement between the space owner and the client. Usually, the owner of the area would only be providing the air conditioning system as well as the fittings of the area while the rest would be shouldered by the tenant. Maintenance afterward would then be dependent on the tenant.

 

4. Cash flow

Depending on the location of the office space, prices may also vary. The closer it is to a business district the more expensive it could potentially be. Make sure that the expenses that will be incurred for the office space will not cause a dent to other parts of your budget. Also look at the long term factors such as the economy. Prices could go up or down, be sure that you’ll be prepared to that and that your business won’t eventually suffer due to the office costs.

 

5. Exit plan

If you plan on expanding your business eventually, it would be wise to consider what you’ll eventually do with your acquired office space. It would be best to have a strategy for the future. Would you be leaving the space? Selling it? Keep it? As long as you have a plan that’s two steps ahead of everything, the better chance you have of not falling into a trap that you created yourself.

Overall, acquiring an office space isn’t something that should be taken lightly. There are considerations that one should be knowledgeable of in order to not be caught off guard with expenses and processes.

 

Source: Rappler