Renting commercial space in Manila can be a strategic move for businesses looking to establish or expand their presence in the bustling capital of the Philippines. However, before signing any lease agreement, there are several key factors to consider to ensure you make the best choice for your business needs.

Location Matters

Manila is a sprawling metropolitan area composed of several distinct districts, each offering unique benefits for businesses. Selecting the right location depends largely on your target market and the nature of your enterprise. For instance, Makati and Bonifacio Global City (BGC) are premier business hubs known for their modern office towers, upscale amenities, and vibrant professional communities, making them ideal for corporations seeking prestige and connectivity. On the other hand, districts like Quiapo or Divisoria provide more budget-friendly commercial spaces but may present challenges such as congestion and older infrastructure. Understanding these differences helps businesses align their location choice with operational needs and growth plans.

Understand the Lease Terms

Commercial leases in Manila often have specific terms that differ significantly from residential leases, so it’s crucial to review these carefully before committing. Typically, commercial lease agreements specify the lease duration, which usually ranges from one to five years, sometimes longer, and this should be clearly stated in the contract. Rent escalation clauses are common, detailing how and when rent may increase during the lease term, often annually or after a set period. Security deposits usually amount to several months’ rent, and additional fees such as maintenance charges or association dues may also apply. It is essential to clarify who is responsible for repairs, maintenance, and utilities to avoid unexpected expenses, as these responsibilities vary by contract. Consulting a legal expert to review the lease can help ensure all terms are transparent and fair.

Assess the Space and Facilities

When visiting a commercial property in Manila, thoroughly inspect the condition of the space to ensure it meets your business needs. Evaluate the layout to confirm it supports your operations efficiently. Accessibility is crucial—check if the building has wheelchair ramps, clear entryways, and is easy to reach for employees and clients. Parking availability is another important factor; verify if there are enough parking spaces, including designated spots for handicapped or compact cars, and if the parking lot is well-maintained and properly lit. Additionally, assess security features such as functioning locks, security cameras, and adequate lighting around the premises. Essential facilities like elevators, restrooms, and reliable power supply must be in good working order to support smooth daily operations. Don't forget to consider maintenance fees and any potential renovation costs during your inspection to avoid surprises later

Budget Wisely

Renting commercial space in Manila involves more than just paying the monthly rent. You need to consider additional costs such as renovations and furnishings to customize the space according to your business needs. Permits and licenses required to operate legally can also add to your upfront expenses. Ongoing costs like utilities, maintenance fees, and association dues should be factored into your budget as well. Rental rates in Manila vary widely depending on location and building quality—for example, average lease rates range from around ₱800 to ₱850 per square meter in Manila proper, up to ₱1,400 to ₱1,800 in Bonifacio Global City. Aligning your budget with these variable costs ensures your business plan remains financially viable and sustainable.

Legal and Regulatory Compliance

Before renting commercial space in Manila, it is essential to ensure the property complies with local zoning laws and business regulations. Manila’s zoning ordinances categorize areas into various commercial zones, each with specific permitted uses and development standards. Operating a business in a zone not designated for your type of activity can lead to legal issues and permit denials. Consulting a legal expert who specializes in Philippine commercial real estate is highly advisable. They can review lease contracts, verify the legitimacy of the property owner, and ensure compliance with zoning and regulatory requirements. This step protects your investment and helps avoid costly disputes or interruptions in business operations.

Consider Accessibility and Transportation

Manila is well-known for its heavy traffic congestion, which can significantly impact daily business operations. When selecting commercial space, prioritize locations that are easily accessible to your employees, clients, and suppliers to minimize travel time and improve punctuality. Being close to major roads and thoroughfares can help, but even more important is proximity to public transportation options such as jeepneys, buses, MRT, and LRT stations. Easy access to these transit systems can make commuting more convenient and reduce the stress of navigating Manila’s busy streets. Choosing a well-connected location not only benefits your workforce but can also enhance client visits and supplier deliveries, contributing to smoother business operations overall.

Future Growth Potential

When choosing commercial space in Manila, it’s important to think long-term. Select a location that can accommodate your business as it grows, whether through additional floor space or flexible lease terms that allow for expansion. Avoid spaces that might quickly become too small or outdated for your needs. Additionally, research the area’s future development plans.

New infrastructure projects, commercial centers, or transportation improvements can boost your business by increasing foot traffic and accessibility. Conversely, planned construction or zoning changes might disrupt operations or reduce the area’s appeal. Being aware of these factors helps you make a strategic decision that supports sustainable growth.

Key Takeaway 

Renting commercial space in Manila requires careful planning and due diligence. By considering location, lease terms, budget, legal aspects, and accessibility, you can find a space that supports your business goals and ensures a successful operation in this dynamic city.