The document provides information on choosing the right office space. It discusses factors to consider such as the nature of business, location, branding and image, labor pool, accessibility, and support services. It also summarizes the key differences between corporate offices, shared services, and business process outsourcing in these areas. Finally, it outlines lease information including rental rates, terms, handover conditions, and details about KMC MAG Group which can assist with commercial property needs.

1. Office Expo 2014
May 2014
How to Choose the Right
Office Space

2. Occupier Attributes

3. Nature of Business

4.  Head office
 Sales office
 Financial institutions
 Brokerage firms
 Law firms
 Advertising firms
 Insurance companies
Corporate Office

5.  Customer support
 Technical support
 Telemarketing
 Employee IT help-desk
 Insurance processing
 Data entry/processing
 Data conversion
 Book keeping/ Accounting
 Online/ web research
Business Process Outsourcing

6.  IT
 HR
 Finance
 Facilities
 Sales
 Logistics
Shared Services

7. Location

8.  Prime
 Low-cost Areas
 Central Business Districts
 Next Wave/ Provincial
sites
Location

9. Branding and Image

10. Labor Pool

11. Accessibility

12. Support Services

13. Area for Expansion

14. Summary
Office Type Corporate Office Shared Services BPO
Location Prime CBD Next wave/Low cost
area
Image/Branding High priority Mid priority Low priority
Labor Pool Any Fresh graduates Experienced
Accessibility Office hours 24/7 24/7
Support Services Office hours 24/7 24/7
Area for Expansion Low priority High priority High priority

15. Building Specifications
 Qualitative Aspect

16. PEZA-Accreditation

17. Number of floors

18. Floor plate

19. Floor Efficiency

20. Floor Efficiency Computation
Gross Leasable Area = 2000 square meters
Net Usable Area = 1500 square meters
Floor Efficiency = (Net Usable / Gross Leasable) x
100
(1500/2000) x 100 = 75%

21. Density Allocation

22. AC System

23. Operating Hours

24. Telco Provider

25. Floor loading

26. Number of Elevators

27. Backup Power

28. Parking space

29. Amenities

30. Riser Space

31. Summary
Office Type Corporate Office Shared Services BPO
PEZA No Yes Yes
No. of Floors High-rise Low to Mid-rise Low to Mid rise
Floor Plate 500-1,000sq m 1,500-2,000sq m 1,000-2,000sq m
Floor Efficiency High High High
Density Allocation 10-15sq m / pax 6-10sq m/ pax 6sq m/ pax
Operating Hours Normal office
hours
24/7 24/7

32. Office Type Corporate Office Shared Services BPO
Telco Provider At least 2 2-3 providers 2-3 providers
Floor Loading 60psf 80-100psf 80-100psf
Number of
Elevators
2-3 elevators per
floor
2 elevators per floor 2 elevators per floor
Back-up Power 100% N+1 (100%+) N+1 (100%+)
Parking 1 for every 70 -100
sqm leased
1 for every 1000 sqm
leased
1 for every 500
sqm leased
Amenities Normal office
hours
24/7 24/7
Summary

33. Lease Information
Quantitative Aspect

34.  Rental Rate
 CUSA/Association dues
 AC charges
 After office extension charges
 Deposits
 Construction costs based on hand-over
condition
 Lease Term
Lease Information

35. Rental Rates (Key Office Figures)
Grade
Average
Net
Rental
Level
YoY
Change
Upper
Net
Rental
Level
Vacancy
Rate
Q4/2013
Prime
Yield
Spread
Makati Premium 1065.60
8.5%
1300.00
5.6%
8.2%-
9.2%Grade A 759.40 950.00
BGC Grade A 735.30 4.8% 950.00 2.9% 6.2%-
7.2%
Ortigas Grade 571.50 7.0% 750.00 2.5% 6.8%-
7.8%

36.  Traditional Office Space - at least 3 years
 Serviced Office Space - at least 6 months
 Virtual Office Space
 Shared Office Space
Lease Terms

37. Lease Terms and Conditions

38.  Company is allowed to pre-
terminated the lease prior to its
expiration
 Guaranteed lease 36th month
 Forfeiture of Security Deposit
 Not necessary to pay the remaining
months of the lease term
Pre-termination Rights

39.  Ideal for big floor
takers with expansion
plans
 Certain level of
guarantee but no
commitment
 Tenant priority
Right of First Refusal

40.  Protection on possible down-sizing
 Flexibility to incubate a sister
company or company resulting to
a merger
 Assign lease of companies due to
a merger
Sublease and Assignment Clause

41.  Warm-shell: Smooth
cement flooring, AC
units, fire sprinklers,
smoke detectors, t-
runners, acoustic boards
 Bare-shell: Rough
cement, open ceiling
Handover Condition

42.  Secure rates, terms, and
conditions on current
market
 More flexibility on building
design
 Build-to-suit arrangements
Pre-lease Arrangements

43.  Cap on renewal rates
 Lower hold-over
penalties
Renewal Clause

44.  Incorporated in 2009
 Headquarters: Sun Life Centre, Bonifacio
Global City
 Branch Office: Rufino Pacific Tower,
Makati
 Has a pipeline of over 1 million square
feet
 1.5 Billion (Php) in Capital Markets
transactions in 2013
About KMC MAG Group

45. KMC MAG Group key facts
Over 100 competitive staff employed
Strong Media Exposure
600,000+
square feet of commercial &
residential properties which were
leased and sold for 2013
300+companies assisted
in the last few years in their
business set up in the Philippines
Recognized globally.
#1 Best in Real Estate Agency
awarded by International
Property Awards

46.  KMC MAG Group is an international Associate of Savills
 Savills is a leading international real estate services group listed
on the London Stock Exchange
 Savills has approximately 25,000 employees and 500 offices
worldwide
 The services of Savills include residential, office, industrial, retail,
leisure, healthcare, hotel and mixed use development schemes
International Network

47. PHILIPPINES
Manila

48. Service lines overview
Valuation
Investments
Consulting
& Research
Tenant
Representation
Asset Management
Property
Management
Facilities
Management
Residential Services
Hotels and Leisure
Project Marketing Project Management
Research &
Development
Construction Operation
Serviced Offices
Offshore Corporate Services

49. Rosario “Cha” Carbonell
Associate Director
rosario@kmcmaggroup.com
Thank You!
(+63 2) 403-5519
tenantrep@kmcmaggroup.com
kmcmaggroup.com