Investing in commercial property, such as office space for rent in ortigas, is not the primary option for many real estate investors. The majority of investors would normally invest in residential property.
That is to be expected because the majority is not equipped with the necessary knowledge and experience in commercial property investing. There is also the perception that such an investment requires huge amounts of capital.
That is from the truth. Here are 6 reasons to include commercial property, such as office space for rent in Ortigas, in your property portfolio.
Prime, Strategic Location
Commercial properties are located in prime business locations. The Ortigas center is one such location and is considered the 2nd most important business district in Metro Manila.
It is a highly desirable commercial location with a high density of office space buildings, commercial centers and residential condominiums.
Ortigas Center is home to many of the Philippines biggest corporations such San Miguel, Banco De Oro and IBM Daksh.
Ortigas is also strategically located in the center of Metro Manila making it more accessible than Makati to residents in the North and East of Metro Manila. It is accessible via various public transportation – jeepneys, buses, shuttle services and the MRT.
High Occupancy Rates
Ortigas Center has historically enjoyed high occupancy rates due to its strategic location and available facilities. Companies prefer to locate or have a branch office in Ortigas to have an accessible to employees and executives living in the North and East of Metro Manila.
Some companies also prefer the Ortigas area to be near their clients and customers. Being a commercial hub, there are many potential clients and customers in the Ortigas Center area.
Currently, occupancy rate stands at around 94%. Most of the prime buildings have high occupancy rates and the vacancies are commonly in the older buildings.
In addition, companies normally don’t move unless there is a compelling business reason – either there is a need to expand or the rates have escalated to too high a level compared to prevailing market rates.
The current high occupancy rate is also driven by the lack of incoming supply. There is a deficiency in the supply of quality office space for rent in Ortigas
The limited supply works in the favor of the investor since it drives the rental rates up and ensures continued high occupancy.
This year, the I-Square building is the only building becoming operational and it will take at least another 3 years before a new building is built.
Ortigas is a hub of business, commercial and residential facilities.
It is home to big shopping malls and retail commercial centers – SM Megamall, Robinson’s Galleria, Shangri-La, Podium and St. Francis Square.
It is the home of the University of Asia & the Pacific and Lourdes School. It is also near De La Salle University in Taft.
Less Property Management Hassle
Office condominiums in general requires less property management. The tenant is responsible in maintaining the property. Tenants coordinate with the condominium administration for their needs usually without the need of the owner.
For office and commercial buildings, there is usually enough income to hire a property management office.
No Rent Control Headaches
Office space rentals are not subject to rent control laws. It is also easier to just padlock a company that is already in violation of the lease contract. Enforcing the lease contract is generally easier with office space rentals.
With residential rental properties, kicking out a tenant usually requires intervention from the sheriff or other local authority. The legal process usually provides remedies for the tenant to lengthen their stay.
Such is not the case with office spaces. A tenant in default can be padlocked or power can be cut off to the unit effectively stopping company operations. Any office equipment can also be held as chattel mortgage providing additional security for the investor.
Office space rentals are a viable addition to any property portfolio. Offices spaces to be held as investments should be located in prime locations, have high occupancy rates, face limited supply and have access to desirable facilities. In addition, investing in offices is desirable because there is less property management hassle and there are no rent control headaches.
These 6 reasons factors combined make office space for rent in Ortigas a compelling alternative for addition to your investment property portfolio.