A project feasibility study on the construction of an office building and the subsequent leasing of office spaces in Batangas City

• Main Authors: Castillo, Virna, Fong, Jenny, Policar, Erwin C., Puti, Ma. Kathleen Ribas, Quetingco, Janet T., Uyco, Cherry C.
• Format: text
• Language: English
• Published: Animo Repository 1993
• Subjects: Lease and rental services; Office leases; Commercial buildings; Office buildings > Philippines > Batangas City
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8151
• Institution: De La Salle University

Company ProfileA. Name of Business Organization Archer's Building Corporation B. Business Address 4905 Enrique St., Cor. Filmore St., Makati, Metro ManilaC. Nature of Operations Leasing of Office Units II. Product Description This project feasibility study concerns the construction of an office building along P. Burgos St. in Batangas City, and the subsequent leasing of office spaces to business firms. The building constitutes a total office area of 1,892 square meters. It comprises ten floors, the ground floor and mezzanine having two office units each, and the rest with three office units each floor. Facilities and utilities include generators, fax and photocopy machines, telephone lines and support services, water and power supply, elevators, canteen, centralized air-conditioning, security system and safety mechanisms, and a basement parking lot.III. Project ObjectivesA. General Objectives1. To ascertain the feasibility of constructing an office building in Batangas City.2. To ensure the viability of the future leasing of available office spaces to business entities.B. Specific Objectives1. To define the management and legal considerations in the organization and governance of a business concern.2. To quantify the magnitude of the market demand for the leasing of available office spaces vis-a-vis supply, related factors affecting demand, competitive pricing policy and marketing strategies.3. To identify the principal technical requirements with respect to the location and layout of the building, structure specification as to building facilities and utilities in compliance with zoning regulations.4. To appraise the financial viability of the project, including the possible sources of financing, and the terms and conditions of the financing agreement.5. To determine the impact of the business on the socio-economic aspect of the area under study.IV. AbstractA. Management and Legal Study The management and legal study is geared towards the efficient operations of the project. The Archer's Building Corporation consists of a total authorized capital stock of P15M, and a paid-up capital amounting P 7.6 M. The design of the internal structure of the organization and the job descriptions are also incorporated in such study.The legal study takes into account the tax liabilities, whether national or local, at the inception of the project operations to ensure proper compliance to tax regulations and that all applicable taxes have been provided for in the profitability estimates.Marketing Study The marketing study identifies the principal socio-economic factors affecting demand. As of 1989, the total demand for office spaces amount to 255,9096 square meters relative to supply of 109,095.35 square meters. The entry of Archer's Building Corporation into the leasing market provides the firm a competitive edge in the market given the stratified occupancy rate of 80 percent, 90 percent and 100 percent consecutively for three years. Survey results showed a total demand in office area of 9,200 square meters. At this note, the Archer's Building Corporation given the strategic marketing efforts it has drawn will supply 20.5 percent of the market (i.e. 1,892/9,200 square meters).