Demand up for office spaces in lower rent districts

MANILA, Philippines - The pressure on companies to reduce costs as a means to remain competitive has stimulated the renewal of strategic locations that offer quick access to the prime business district of Makati. Among these locations is Chino Roces Extension where old warehouses have given way to commercial and office buildings.

In that part of the former Pasong Tamo Extension adjacent to Dasmarinas Village and originally zoned as an industrial area, storage and other structures have been torn down to make room for new office buildings like the 12-story Ecoplaza. Offering a gross floor area of 24,800 sqm., Ecoplaza and other similar developments are catching the attention of companies that want the benefits of a Makati location but at up to 50 percent less than the lease rates in the heart of the Central Business District.

Henry Cabrera, senior manager of Jones Lang LaSalle Leechiu (JLLL), a global services firm operating in 60 countries and specializing in real estate, relates that occupancy costs are typically “among the top three expenses of many firms and the most difficult to manage quickly.”

A number of global firms have in fact addressed the issue of high occupancy costs by remaining in lower-rent districts like Chino Roces Extension. Firms moving into Ecoplaza will find themselves in the company of multinationals like Glaxo Smith Kline, Bristol Myers Squibb and DHL which have offices there.