APPLIED ECONOMICS

RENTALS

ABM_AE12
APPLIED ECONOMICS
RENTALS

At the end of the lesson the learners are

expected to:
Understand the meaning of rentals
Analyze the effects of contemporary issues
such as migration, fluctuations in the
exchange rate, oil price increases,
unemployment, peace and order, etc. on the
purchasing power of the people.

ABM_AE12
APPLIED ECONOMICS
RENTALS

We explored the reasons why the rental

office space in commercial districts in Makati,
Taguig and Ortigas in Metro Manila are very
expensive.

ABM_AE12
APPLIED ECONOMICS
RENTALS

ABM_AE12
APPLIED ECONOMICS
RENTALS

Since companies spent hundreds of

millions of pesos to buy or lease real estate in
these location and disbursed probably billions of
pesos to construct high rises or condominiums
they expect favorable returns on their
investment.

ABM_AE12
APPLIED ECONOMICS
RENTALS

There are several benefits of having an

office in these commercial districts. First, it gives
legitimacy and prestige to the business
enterprise.

ABM_AE12
APPLIED ECONOMICS
RENTALS

If a company can afford the high cost of

office space, it must be a genuine business
venture supported with huge resources and
having favorable business enterprise.

ABM_AE12
APPLIED ECONOMICS
RENTALS

Second, there are economies or savings

when business enterprises are located in one
strategic place. Aside from attracting a lot of
customer and client, the transaction cost may go
down if the office is accessible to workers and
near to the clients and service provider

ABM_AE12
APPLIED ECONOMICS
RENTALS

Third, these commercial districts are well-

planned and designed for business with their
good infrastructure and adequate support
services.

ABM_AE12
APPLIED ECONOMICS
RENTALS

Because of these benefits, many local

government units as well as private real estate
developers are developing strategic areas in
their localities into commercial districts.

ABM_AE12
APPLIED ECONOMICS
RENTALS

ABM_AE12
APPLIED ECONOMICS
RENTALS

ACTIVITY:
• Interview 3 people who rent in your community
and ask them the following question:
– What is the reason why you rent?
– Did the rental house have the basic necessities that
you need or your family needs?
– What do you think are the advantages of rentals?
– What do you think are the disadvantage of rentals?

ABM_AE12
APPLIED ECONOMICS
RENTALS

Quiz:
Explain the three benefits of having business in
commercial districts.

ABM_AE12
APPLIED ECONOMICS
RENTALS

Reference:
• Tullao Jr., Tereso S. Applied Economics For A
Progressive Philippines. Phoenix Publishing House;
927 Quezon Ave., Quezon City. 2016
• Pagoso, Cristobal M. Philippine Economics (Macro
Approach). NELSON PUBLICATION; Marimar
Village Paranaque City. 2003
• Carnaje, Gideon P. Applied Economics. Vibal Group
Inc, Araneta Avenue, Quezon City. 2016

ABM_AE12