Office Leasing Secrets We Want You to Know
January 30, 2025
Leasing an office isn’t as simple as picking a space and signing a contract. There are strategic moves that can save you money, provide flexibility, and help you find the right location. Here are some lesser-known office leasing secrets that can benefit your business in Greater Manila.
- Leverage Build-Out Contributions from Landlords
Before signing a lease, ask about landlord contributions for office modifications. The most common practice in the Philippine office market is to offer bare or warm shell spaces. However, some may be amenable to cover certain improvements to make the space work for your business. Whether upgrading interiors or adjusting layouts, securing these perks can save costs and help create a workspace that aligns with your needs-especially in high-demand areas like Makati and Cebu Business Park. Make sure to communicate this need to your broker for negotiations to happen!
- Control Lease Escalation Clauses
Lease escalation clauses typically raise rent yearly. However, you can negotiate a cap on these increases or tie them to the Consumer Price Index (CPI). This keeps your rent predictable, even in an inflationary market.
- Subleasing as an Exit Strategy
If your space becomes too large, subleasing can help reduce costs. Many tenants don’t realize this option is available, but subleasing unused space is a great way to stay flexible in a changing market. However, note that not every space allows this. Best to be transparent!
- Rent-Free Periods Aren’t Just for Big Companies
Rent-free periods aren’t exclusive to large corporations. If your business has strong potential, you can negotiate rent-free months, especially if you’re signing a long-term lease or committing to rapid growth.
- Secure Flexible Lease Terms for Future Growth
Rather than locking into a fixed-term lease, negotiate for flexible options that allow you to expand into additional space when needed. This is particularly important in growing areas like Quezon City and Cebu Business Park.
- Use Market Lulls to Your Advantage
When the market is slow, landlords are more likely to offer lease concessions. Keeping an eye on market trends in areas like Alabang and Cebu can help you secure better deals and terms.
Weaver Group: Your Strategic Real Estate Partner
Weaver Group offers expert guidance for office leasing in Greater Manila and Cebu. We’ll help you navigate complex negotiations, secure flexible terms, and find the best deals for your business. Contact us today to get more commercial real estate insights and strategies for your business.
