At 100 to 250 workstations, a serviced office in Makati is rarely a monthly membership. The operator may fit out a floor for you and commit capacity, so the term, the price escalation and the exit terms are negotiated, and they decide how much it costs to be wrong about headcount. This guide sets out the clauses that matter, what published sources say about them, and a worked example of exit cost. We do not publish typical Makati term lengths or exit fees, because we have no dated, operator-confirmed figures. Ask each operator for its terms in writing.
A workstation is one seat with a desk, chair and computer setup. A serviced office is furnished, wired space run by the operator on a single fee. In the Philippines it is often written as a license for services, which counsel can advise on, instead of a lease.
How much space 100 to 250 seats need
At 3.0 to 3.6 sqm per seat, the density of operator sites on the FlySpaces Cebu list, 100 seats need 300 to 360 sqm and 250 seats need 750 to 900 sqm (seats x 3.0 to 3.6). At 5 to 7 sqm per seat, a planning assumption for lower-density layouts, the range is 500 to 1,750 sqm. Ask your space planner for your figure.
1. Term length
Ask four questions before you compare fees:
- What is the minimum term, and does a custom layout (manager rooms, private pantry, server room) lengthen it? A longer minimum for a custom build is common, because the operator recovers its fit-out through the fee.
- Is there a shorter option for a ready-built floor, and what does it cost?
- Can you take seats in stages, on a written ramp schedule? Ask whether the schedule is a commitment or a target.
- What is the renewal term, and how much notice must you give to avoid automatic renewal?
Published sources show a wide range, and most describe smaller offices. A Philippine operator guide describes serviced office contracts as typically monthly or six to twelve months, with one to three months' notice (virspacio.com). IWG's general terms for office and co-working customers, filed with the US SEC in 2023 and not specific to the Philippines, set notice periods by term length: one month for month-to-month, two months for a three-month term, and three months for longer terms, given before the end of the term. Neither is a guide to what an operator will offer you at 200 seats, so use them to frame the questions.
2. Price escalation
Ask whether the seat fee escalates, by how much, and on what date. We have no sourced escalation rates for Makati serviced offices. Here is what a hypothetical rate does:
| Year | Formula | Fee per seat per month, PHP |
|---|---|---|
| Year 1 | given | 15,000 |
| Year 2, 5% increase | 15,000 x 1.05 | 15,750 |
| Year 3, 5% increase | 15,000 x 1.05 x 1.05 | 16,537.50 |
For 200 seats over 36 months, the total is 200 x 12 x (15,000 + 15,750 + 16,537.50) = PHP 113,490,000, against PHP 108,000,000 with no escalation (200 x 12 x 15,000), a difference of PHP 5,490,000. The rate and the fee are hypothetical, and they are not quotes.
3. Early exit
Without an exit clause, a tenant who leaves early generally remains liable for rent until the end of the term, subject to the landlord's duty to mitigate by re-letting (respicio.ph commentary on Philippine leases, about 469 days old). That commentary describes leases, and a serviced office agreement may be written differently, so confirm the position for your contract with Philippine counsel. The same commentary lists the usual exit clauses as a fixed pre-termination fee, automatic forfeiture of the deposit, or a hybrid of the two, with notice often 30 to 60 days and fees such as one to two months' rent (respicio.ph, about 241 days old). These figures describe leases generally, not serviced offices in Makati.
What to negotiate:
- A break option. The earliest date you can use it, the notice period, and the fee formula.
- A stepped fee. A fee that falls as the term runs, in place of a flat amount.
- Seat reduction. The right to give back part of the floor, with its notice and charge.
- Assignment or replacement. Whether you can sublet or propose a replacement occupier.
- A cap on liability. An upper limit on what you owe if you leave.
- Penalty review. Under Article 1229 of the Civil Code, courts may reduce a penalty that is iniquitous or unconscionable. Ask counsel how that applies to your clause.
4. A worked example of exit cost
All figures are hypothetical and are not quotes. The floor has 200 seats at PHP 15,000 per seat per month, a 36-month term, and you decide to leave at month 18.
| Scenario | Formula | PHP |
|---|---|---|
| Monthly fee | 200 x 15,000 | 3,000,000 |
| No break clause: fees for the remaining 18 months | 3,000,000 x 18 | 54,000,000 |
| With a break clause: fees during 3 months' notice | 3,000,000 x 3 | 9,000,000 |
| Exit fee of 3 months | 3,000,000 x 3 | 9,000,000 |
| Deposit forfeited, 2 months | 3,000,000 x 2 | 6,000,000 |
| Total with a break clause | 9,000,000 + 9,000,000 + 6,000,000 | 24,000,000 |
The break clause saves PHP 30,000,000 in this example (54,000,000 − 24,000,000), which shows why it is worth negotiating before signing. The fee formula, the notice period and the deposit treatment each move the result, so price all three.
5. Deposit and operator termination
Ask how much the deposit is, when it is refunded, and what can be deducted. IWG's general terms set the retainer for office customers at not less than two times the highest monthly fee, and a listing for BPOSeats.com's Cebu sites states one month of deposit and one month of advance rent. Terms differ by operator. In addition, ask what lets the operator terminate. IWG's general terms provide that, if it terminates for breach, the customer must pay all sums that would have fallen due for the rest of the term within 30 days. Ask for a cure period and a clear list of triggers.
6. Handback and restoration
A serviced office usually spares you the bare shell restoration of a traditional lease, but terms vary. Ask for the handover condition in writing, a joint inspection at move-in and move-out, and a list of what counts as damage or a modification you must reverse. If you build a server room or private pantry, ask who removes it and who pays. Confirm how overtime cooling is billed, since in Makati it can add a separate line, as we show in our guide to what Makati quotes leave out.
Questions to ask before you sign
- What is the minimum term, and what shorter options exist?
- What is the annual escalation, and from what date?
- Is there a break option, and what are its date, notice and fee?
- Can you reduce seats during the term, and with what notice and charge?
- What deposit is required, and when is it refunded?
- What can the operator terminate for, and with what cure period?
- In what condition must you hand the space back, and who inspects it?
Get a shortlist
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