Makati Commercial Spaces: 5 Things Successful Business Owners Should Check Before Leasing

Leasing a commercial space in Makati can be a strong move for a business. Makati is one of Metro Manila’s most established business districts, with major banks, corporations, offices, hotels, malls, and residential communities nearby. Colliers describes Makati CBD as the Philippines’ premier business district and financial hub, making it a highly attractive location for companies and business owners.

However, choosing the right commercial space is not only about location or monthly rent. A space may look good, but if the lease terms, permits, building rules, customer access, or fit-out requirements are not checked properly, the business owner may face delays, extra costs, or operational problems later.

A smart Makati Commercial Spaces search should include more than viewing the unit. Business owners should check whether the space fits their business type, budget, permits, customer flow, and long-term business plan before signing a lease.

Why Makati Commercial Spaces Need Careful Review

Commercial Spaces can be ideal for cafés, restaurants, clinics, offices, salons, retail shops, showrooms, and service businesses. But each business has different needs. A restaurant may need exhaust, grease trap, water lines, and strong foot traffic. A clinic may need accessibility, parking, permits, and a professional building image. An office may need internet, elevators, security, and employee convenience.

Before signing, business owners should check these five important factors.

1. Check If the Location Matches Your Target Customers

A commercial space in Makati should match the people your business wants to attract. A space may be located in a famous area, but that does not automatically mean it is the right location for your business.

For example, a café may need strong foot traffic, nearby offices, and good street visibility. A clinic may need parking, elevator access, and easy directions for clients. A restaurant may need nearby residential buildings, office workers, delivery access, and evening customer traffic. A showroom or office may need a professional address more than street exposure.

Makati CBD remains a preferred office address for many companies, supported by its central location, pedestrian-friendly infrastructure, services, and public spaces.  This makes Makati attractive, but business owners still need to check whether the exact building, street, and unit location match their customer profile.

Business owner check: Before leasing, ask: Who is my target customer, and will they naturally pass through or visit this location?

2. Check the Total Lease Cost, Not Only the Monthly Rent

Many business owners focus only on the rental rate. However, the real cost of leasing commercial space may include much more than monthly rent.

Possible costs may include advance rent, security deposit, association dues, CUSA or common area charges, VAT, withholding tax, parking, utility deposits, internet installation, aircon maintenance, signage fees, construction bond, fit-out deposit, permit costs, and reinstatement costs when moving out.

For example, a space may look affordable at first, but if the tenant must pay several months of advance rent, deposit, building charges, renovation costs, and permit-related expenses, the starting cash requirement can become much higher than expected.

Business owner check:Ask for a full cost breakdown before signing. Do not compare spaces based only on monthly rent.

3. Review the Lease Terms, Escalation, Renewal, and Exit Rules

The lease contract should clearly explain the lease period, payment schedule, rent escalation, renewal option, pre-termination rule, handover condition, deposit refund process, and penalties.

This is important because commercial leases often involve larger commitments than residential leases. A business owner may spend money on renovation, signage, furniture, equipment, permits, and marketing. If the lease term is too short or the renewal rule is unclear, the business may face risk after investing in the space.

The Civil Code of the Philippines includes general lease obligations for lessors and lessees, including the lessor’s obligation to deliver the leased property fit for its intended use and the lessee’s obligation to pay rent and use the property according to the agreed purpose.  This is why the written contract should clearly state each party’s responsibilities.

Business owner check:Before signing, ask what happens if you need to renew, expand, terminate early, transfer the lease, or close the business.

4. Check Fit-Out Rules, Utilities, and Building Restrictions

A commercial space should support the actual operations of the business. Some units may look spacious but may not be suitable for certain business types because of building restrictions or technical limits.

Business owners should check fit-out approval, construction hours, contractor rules, electrical capacity, water lines, drainage, exhaust, grease trap, air-conditioning system, internet providers, signage rules, delivery access, waste disposal, fire exits, and restroom access.

This is especially important for restaurants, cafés, clinics, salons, convenience stores, and businesses that need special equipment. If the building does not allow the required setup, the business owner may spend time and money on a space that cannot operate properly.

Business owner check:Before paying a deposit, confirm whether your planned business use, renovation plan, signage, and equipment are allowed by the building.

5. Confirm Documents, Permits, and Payment Authority

Before leasing any Makati commercial space, business owners should confirm that the person leasing the space has authority to do so. They should also check the documents needed for business permit processing.

Makati City’s business permit requirements for new business applications include items such as locational clearance, contract of lease, business registration documents, barangay clearance, public liability insurance, inspection report, and other documents depending on the business type. If the space is leased, Makati’s listed requirements also mention attaching the Mayor’s Permit of the building owner or landlord as a real estate lessor.

Fire safety should also be considered early. The Bureau of Fire Protection has a process for Fire Safety Inspection Certificate applications for new business permits, which is part of the compliance process for many businesses.

Business owner check:Do not pay large amounts without confirming the landlord, authorized representative, lease documents, receipts, permit requirements, and payment instructions.

How BedandGo Inc. Helps with Makati Commercial Spaces

BedandGo Inc. assists business owners, property owners, investors, and companies looking for commercial spaces for lease or sale in Makati and Metro Manila.

Our team can help compare available commercial spaces, arrange viewings, coordinate with owners or representatives, review location fit, and guide the next steps before leasing. This support is useful for businesses that need to compare different locations, understand possible costs, and avoid rushed decisions before signing.

Looking for a commercial space in Makati? Contact BedandGo Inc. with your preferred location, business type, budget, required floor area, and target opening date so our team can help review available options.

Frequently Asked Questions

1. What should business owners check before leasing a commercial space in Makati?

   Business owners should check location fit, total lease cost, lease terms, fit-out rules, utilities, building restrictions, landlord authority, and permit requirements before signing.

2. Is Makati a good location for commercial space?

   Yes, Makati can be a strong location because it is a major business district with offices, residential buildings, malls, hotels, and corporate activity. However, the best location still depends on the business type and target customers.

3. What hidden costs should tenants prepare for?

   Possible hidden costs include association dues, CUSA charges, VAT, withholding tax, utility deposits, parking fees, fit-out bond, signage fees, permit costs, and reinstatement costs.

4. Why are building rules important before leasing?

   Building rules affect renovations, signage, operating hours, deliveries, pets, food operations, exhaust systems, grease traps, and customer access. These rules can directly affect whether the business can operate properly.

5. Can BedandGo help business owners find commercial spaces?

   Yes. BedandGo Inc. can help business owners compare commercial spaces in Makati and Metro Manila, arrange viewings, coordinate with owners, and review location fit before leasing.

Sources