--- title: Managed Office in BGC, Who Pays for Fit-Out and What Happens at Exit description: "Managed office in BGC: who pays for fit-out, who owns it, and what happens at exit, with the clauses to check before you sign. Get a shortlist." image: https://blog.flyspaces.com/hubfs/FlySpaces%20Philippines%20(3).png --- [![spacesasia-logo](https://blog.flyspaces.com/hs-fs/hubfs/SpacesAsia%20-%20June%202019/spacesasia-logo.png?width=260&name=spacesasia-logo.png "spacesasia-logo")](https://blog.flyspaces.com/) - [Home](https://flyspaces.com/) - Navigate - [Flexible Workspaces](https://blog.flyspaces.com/tag/flexible-workspaces#blog-nav) - [News and Events](https://blog.flyspaces.com/tag/news-and-events#blog-nav) - [Industry Insights](https://blog.flyspaces.com/tag/industry-insights#blog-nav) - [City Guide](https://blog.flyspaces.com/tag/city-guide#blog-nav) - [Case Studies](https://blog.flyspaces.com/tag/case-studies#blog-nav) - Connect - [Contact Us](https://flyspaces.com/contact-us) - [Subscribe](https://flyspaces.us14.list-manage.com/subscribe/post?u=0b15b0bb7a66ae626f3388eb9&id=f72d186210) - Share : 3 August 2026 [Listerlynn Joy Garingo - De La Serna](https://blog.flyspaces.com/author/joy-garingo-delaserna) # Managed Office in BGC, Who Pays for Fit-Out and What Happens at Exit In a managed office in BGC (Bonifacio Global City, Taguig), three clauses decide most of your real cost: who pays for the fit-out, who owns it during the term, and what you must hand back when you leave. They sit in the agreement, and they differ by operator and by building. This guide explains the common arrangements, what Philippine law says when a contract is silent, and the questions to put to an operator before you sign. We do not publish fit-out or restoration costs per sqm, because we have no dated, sourced figures. A managed office is a fitted floor operated for one client. Fit-out means the construction, partitions, electrical and air-conditioning work, cabling and furniture that turn a floor into your office. Make-good means returning the space to the condition set out in the agreement when you leave. ### Who pays for the fit-out There are two common structures. Operator-funded. The operator pays for the build and recovers the cost through your monthly seat fee over a fixed term. You avoid a large upfront payment, and the cost shows up in the fee instead. Ask for the fee split into space, services and fit-out recovery, so you can see what you are paying for and what you would still owe if you left early. Tenant-funded. You pay for the fit-out yourself, usually in exchange for a lower fee, a rent-free period or a longer term. Ask for the concession in writing, with dates and amounts. Whichever you choose, ask who approves the design and the contractor, and who carries the risk of cost overruns and late handover. ### What leaving early can cost If the operator funds the build, leaving early can mean paying the part of the fit-out that has not yet been recovered. Here is how to calculate it, using hypothetical inputs that are not quotes: | **Line** | **Formula** | **PHP** | | --- | --- | --- | | Floor area | 200 seats x 5 sqm | 1,000 sqm | | Fit-out cost (hypothetical, PHP 45,000 per sqm) | 1,000 x 45,000 | 45,000,000 | | Monthly recovery over a 48-month term | 45,000,000 / 48 | 937,500 | | Unrecovered balance if you leave at month 30 | 937,500 x 18 | 16,875,000 | This ignores interest, operator margin, VAT and any separate termination charge, all of which the agreement may add. Ask the operator for its formula and for a table showing the balance at each month of the term. ### Who owns what during the term Ownership usually follows how an item is attached. Glass partitions, raised floors, cabling in the walls and air-conditioning additions become part of the building, so the owner of the building or the operator generally keeps them. Desks, chairs and loose equipment usually belong to whoever paid for them, unless the agreement says otherwise. Philippine law sets a default for leases, which the agreement can change. Under Article 1678 of the Civil Code, if a tenant makes useful improvements in good faith, the landlord may choose to pay the tenant half their value at the end of the lease. If the landlord does not, the tenant may remove the improvements, causing no more damage than necessary. The Supreme Court described this as the landlord's option, not a duty, in *Sulo sa Nayon, Inc. v. Nayong Pilipino Foundation* (G.R. No. 170923). The Court has also held that a clause giving improvements to the owner without reimbursement binds the parties (G.R. No. 128058, 19 Dec 2000). A managed office agreement may be written as a license for services rather than a lease, and whether Article 1678 applies depends on how the agreement is characterized. Do not rely on the default either way. Put the position in the contract, and have Philippine counsel review it. This is a draft for review, not legal advice. ### What happens at exit Agreements usually take one of two positions: - Make-good. You return the floor to a stated condition, such as warm shell or bare shell. That can mean removing partitions and cabling, and restoring ceilings and air-conditioning distribution. - As-is surrender. You hand back the space as fitted. Operators may agree where the layout can be reused for the next client. Make-good cost = area x contractor's cost per sqm. Get that quote before you sign, from a contractor who works in BGC buildings, and include building administration charges for after-hours work and waste removal. Ask whether the operator will agree to as-is surrender, whether it is conditional on the layout, and whether there is a fee to waive make-good. ### Clauses to check before you sign 1. Who pays for the fit-out, and where does it appear on the invoice? 2. What is the term, and what is the amortization period for any fit-out the operator funds? 3. What is the balance owed if you leave in month 12, 24 or 36? Ask for the table. 4. What is the security deposit, how many months of fees does it equal, and when is it returned? 5. Which items are yours to take at exit (furniture, servers, access systems, cabling), and which stay? 6. Is exit make-good or as-is, and what does each cost? 7. What is the notice period, and can you reduce seats during the term without triggering a charge? 8. How are disputes over condition at handback decided, and by whom? ### Get a shortlist Tell FlySpaces your headcount, your term and your preferred part of BGC, and the team replies with a shortlist that fits. [Inquire here](https://explore.flyspaces.com/office-space-in-the-philippines-for-100-workstations-flyspaces?hsLang=en-us#:~:text=Contact%20us-,GET%20YOUR%20SHORTLIST,FlySpaces%20team%20replies%20with%20a%20shortlist%20for%20your%20headcount%20and%20areas.,-A%20shortlist%20that) Tags: [Flexible Office Space](https://blog.flyspaces.com/tag/flexible-office-space) ![](https://blog.flyspaces.com/hubfs/SpacesAsia%20-%20June%202019/author-img.png) ##### [Listerlynn Joy Garingo - De La Serna](https://blog.flyspaces.com/author/joy-garingo-delaserna) Joy Garingo - De La Serna is a Filipino business executive specializing in the real estate, flexible workspace, and Employer of Record (EOR) sectors within the Asia-Pacific (APAC) region. She is involved in creative ventures and community-centric workspace environments that support local startups, founders, and generational shifts in hybrid work styles. 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