Beyond Location: Why Amenities are the New Cornerstone of Makati Office Buildings Demand
The Makati Central Business District (CBD) has always been the gold standard for office space in the Philippines. It serves as the historic, economic, and cultural heart of the country’s business landscape, commanding premium rates due to its prestige and robust infrastructure.
But the post-pandemic world has fundamentally changed what tenants—and their employees—expect from a workspace. The global shift to hybrid work has redefined the office’s purpose, elevating it from a simple cost center to a critical tool for talent retention, collaboration, and culture building.
It’s no longer enough to be in the right ZIP code. Today, the battle for premium rent and top talent is fought on the amenity front. Whether you are a business searching for the perfect headquarters or a landlord looking to maximize asset value, understanding this strategic shift is crucial.
Here is a comprehensive breakdown of what drives tenant decision-making in the new era and why the right amenities package is now a strategic necessity in makati office buildings.
The “Flight-to-Quality” Trend: Why Vacancy is Low for the Best Spaces
While many areas in Metro Manila still face high office vacancy rates (17-20% according to recent reports), Makati’s premium Grade A stock remains strikingly resilient, with significantly lower vacancy rates (often dipping below 10%). This discrepancy highlights a major, global trend: the Flight-to-Quality.
Companies are consciously moving from older, less efficient buildings into smaller, yet higher-quality spaces. This consolidation is driven by the realization that the primary purpose of the office has changed. The office is no longer just a container for employees; it’s a destination designed to encourage collaboration, culture, and engagement. If you want employees to willingly abandon their comfortable remote setup, the commute, the time, and the effort must be demonstrably worth it.
This means makati office buildings that offer certified, modern, and employee-centric experiences are the clear winners, commanding the highest rental rates and securing long-term tenants. Quality today is not just about aesthetics; it is about measurable, operational excellence, including superior HVAC systems and better indoor air quality management—factors tenants scrutinize heavily post-COVID.
The Three Tiers of Amenity-Driven Demand: A Tenant’s Checklist
Tenant decisions in Makati follow a strict, three-tiered hierarchy. Skipping any step could disqualify a building from top-tier consideration, regardless of its prestigious location.
Tier 1: Foundational Amenities (The Non-Negotiables & Business Continuity)
These are the absolute operational necessities. They mitigate business risk and guarantee continuity. For modern businesses, especially those in the critical BPO, finance, and tech sectors, these features are the absolute cost of entry into the Grade A market.
- 100% Power Redundancy and Reliability: This means more than just having generators. It requires N+1 redundancy in the system, ensuring that BPO and finance tenants operating 24/7 can handle sustained power outages without even a flicker. Guaranteed backup power is non-negotiable for mission-critical operations.
- Carrier-Grade Fiber Connectivity: Robust, multi-homed fiber-optic infrastructure is essential. Tenants look for diverse entry points and dedicated riser management to minimize risk of disruption. High-speed data throughput is foundational to global business competitiveness.
- Advanced Building Management Systems (BMS): A modern BMS ensures optimal, efficient, and consistent environmental control (temperature and humidity). More importantly, tenants now demand sophisticated air filtration systems (like MERV-13 filters) and enhanced ventilation to maximize fresh air exchange, prioritizing employee health.
- Practical Accessibility and Integration: The building must offer easy access to major thoroughfares, reliable public transport (like the MRT and local jeepney/bus routes near EDSA-Buendia-Ayala lines), and, crucially, integrated dining, lifestyle retail, and sheltered pedestrian access. Employees place immense value on convenience, especially during adverse weather conditions.
Tier 2: Hybrid Work Facilitation (The Productivity Engine & Spatial Strategy)
Once the foundation is secure, the focus shifts to efficiency, collaboration, and spatial optimization—the “glue” that holds the hybrid model together. These amenities maximize productivity during the typically 2 to 4 days employees spend in the office.
- Seamless Collaboration Technology Infrastructure: The core function of the modern office is collaboration. Buildings must offer smart meeting rooms pre-equipped with reliable, high-quality video conferencing systems (reliable displays, cameras, and audio). The infrastructure must support ‘plug-and-play’ functionality to bridge the gap effortlessly between remote participants and in-office teams.
- Flexible, Column-Free Layouts (The ABW Enabler): Tenants actively seek ‘column-free’ or easily reconfigurable floor plates. This architectural flexibility is crucial for implementing Activity-Based Working (ABW) models, allowing them to optimize space for different activities: open-plan collaboration zones, quiet libraries for focus work, presentation halls, and training rooms. Column-free spaces reduce fit-out costs and maximize usable floor area efficiency.
- Acoustically Sound Micro-Environments: The open-plan office is dead if it’s too noisy. Dedicated soundproof phone booths, private focus pods, and segregated quiet zones are essential for private video calls, deep-work sessions, and distraction-free concentration in an otherwise collaborative setting. Effective acoustic design is a Tier 2 must-have.
- Efficient Visitor Management: Streamlined, modern, and digital visitor registration and lift dispatch systems (e.g., destination control elevators) reduce lobby congestion and minimize waiting times, enhancing the perception of efficiency for clients and staff alike.
Tier 3: Experiential & Wellness Amenities (The Talent Magnet & Culture Builder)
These are the features that move beyond utility to provide a superior, human-centric experience. They are the competitive differentiators that help companies win the talent war and boost employee retention.
- Health and Fitness Integration: On-site fitness centers, cycling storage, and high-quality shower facilities are highly valued as they streamline an employee’s routine, supporting health and well-being. These amenities signal that the employer values their employees’ holistic health.
- Biophilic Design and Natural Integration: The incorporation of natural elements, such as green walls, indoor planting, and access to outdoor terraces or gardens, has been scientifically proven to reduce stress and improve cognitive function. Tenants actively seek out buildings that leverage biophilic principles to create calming, appealing workspaces.
- Community and Respite Spaces: Comfortable, well-designed common areas, breakout spaces, and curated lounge areas are vital for fostering the sense of community and spontaneous interaction often lost in a hybrid setup. Buildings that facilitate informal networking through event spaces or attractive rooftops create a powerful magnetic pull.
- Concierge Services and Convenience: Modern Grade A buildings often feature hotel-style concierge desks, on-site postal services, dry cleaning pick-up, and organized food delivery zones. These micro-conveniences save employees time and stress, enhancing the overall workday experience.
- Sustainability and Wellness Certification: Buildings certified under international standards like LEED or local standards like BERDE offer tangible, measurable benefits: improved indoor air quality, better temperature control, enhanced natural light, and reduced resource consumption. This directly links design quality to employee well-being, confirming sustainability as a top-tier, non-negotiable amenity.
The Financial Advantage of Going Green: The Rental Premium
For investors and developers, investing in sustainable design is not a simple cost—it’s a powerful asset driver.
Research in the Philippines consistently shows that certified green office buildings can command a rental premium ranging from 2% to 23% compared to non-certified buildings of similar grade. Furthermore, they often see lower operating expenses (OPEX), higher occupancy rates, and greater tenant loyalty.
This premium is justified because these certifications, such as BERDE (Building for Ecologically Responsive Design Excellence) or LEED (Leadership in Energy and Environmental Design), indicate a highly efficient, resilient asset. Key operational savings come from:
- Energy Efficiency: Optimized chiller systems, smart lighting, and high-performance glass significantly reduce electricity consumption.
- Water Conservation: Rainwater harvesting and efficient plumbing fixtures lower water utility costs.
- Resilience: Green buildings are often built to higher standards, offering better seismic and weather resilience.
As nearly 60% of future Metro Manila supply is projected to be green-certified, the standard for a premium makati office building is rapidly moving toward full certification. The market is increasingly segmenting into certified premium spaces and secondary assets.
Strategic Takeaways for Tenants and Landlords
🔑 For Tenants (Occupiers)
- Don’t Compromise on Tier 1 & 2: Always audit a building’s power redundancy, air quality metrics, and technological readiness first. Your hybrid strategy will fail if the underlying technology and comfort are unreliable.
- Mandate Green Certifications: Insist on LEED or BERDE-certified buildings. This guarantees a healthier, more cost-efficient environment, aligns with corporate social responsibility (CSR), and helps meet Environmental, Social, and Governance (ESG) reporting requirements.
- Evaluate the Commute Value (The 15-Minute Rule): Prioritize buildings that make the entire journey and workday convenient. Look for buildings that are walkable from lifestyle centers, major transit hubs, and essential services. The easier the in-office experience is, the higher the adherence to return-to-office (RTO) policies will be.
🏢 For Landlords (Investors)
- New Builds: Target Platinum and Flexibility: Future projects must target the highest green certifications (LEED Gold/Platinum) and incorporate wide, column-free designs to secure the highest rent ceilings and adaptability. The market rewards architectural foresight.
- Older Assets: Execute a Repositioning Strategy: Owners of aging makati office buildings must invest capital in targeted retrofits. A simple façade lift is not enough:
- Tier 3 Retrofits: Transform lobbies and common areas into engaging, 24/7 dynamic spaces with biophilic elements. Add soundproof phone booths, upgraded pantries, and small fitness/wellness zones to meet modern hybrid needs.
- Offer Flexibility (The Co-Working Component): Integrate high-end, branded flexible office space (co-working or enterprise suites) within the building. This provides tenants with expansion/contraction options, meeting their need for agility, and increases the building’s overall occupancy and revenue per square meter.
- Offer a “Flight-to-Value” Proposition: Bridge the quality gap with financial incentives like extended rent-free fit-out periods (TI allowances) while marketing the building’s superior connectivity or unique historical location within the CBD.
The era of simply offering four walls and a roof is over. In today’s competitive Makati CBD, the amenity package, driven by sustainability and employee experience, is the true measure of a building’s enduring value.
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FREQUENTLY ASKED QUESTIONS
Legazpi Village offers a balanced mix of commercial and residential spaces, providing employees with convenient access to high-quality dining, retail, and a comfortable, walkable environment, enhancing work-life balance.
Read more about it here.
The primary benefit is access to a deep pool of skilled, white-collar professionals, unmatched corporate networking opportunities, and the prestige associated with the Philippines’ premier financial district.
This model provides fully fitted, furnished, and connected office spaces ready for immediate occupancy. It eliminates the capital cost and time delays associated with traditional office fit-outs.
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Consult a local lawyer or corporate services provider early. They will guide you through the process, which typically involves registering with the SEC (Securities and Exchange Commission) and obtaining local permits.
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Securing a traditional space can take 3 to 6 months (due to lease negotiations, fit-out time, and securing permits), which is why the “plug and play” model is growing in popularity.

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