EXECUTIVE SUMMARY

1.1. Name of the Business: Les Espazios

The proponents came up with the name Les Espazios for their study. “Les” as the French

term for the word “The” and “Espazios” for spaces. The name represents the business as a

commercial space with its target market of medium-sized businesses and professional offices.

1.2. Title of the Study

A Feasibility Study On Establishing “Les Espazios”, a Commercial Space, in Del Pilar

Street, Cabanatuan City.

1.3. Building Location

The one-storey building will be located along the street of Del Pilar near Harvest

hotel and Freedom Park in Cabanatuan City, Nueva Ecija.

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1.4. Description of the Logo

Figure 1. Business Logo

The logo shown above represents the nature of “Les Espazios” being a commercial

building. As seen on the bottom part of the logo, it depicts a silhouette of buildings in an

urban place which indicates the type of business “Les Espazios” belongs to. While the

colors used represent formality and credibility of the business.

1.5. Brief Description of the Project

The study focuses on investigating the feasibility of establishing a commercial

building in Cabanatuan City. The objective of the proponents in making this business is to

accommodate the medium-sized businesses as well as the professional offices that are trying

to find a proper location or space for their business. “Les Espazios” is aiming to satisfy

occupants regarding the services, external and internal appearance of the building, safety, and

maintenance given by this business. Additional services like parking lots and CCTVs will be

given to meet or exceed the expectations of the occupants.

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 1.6. General Objectives of the Business

a) To offer a tidy, spacious, and comfortable commercial space with affordable and

efficient service that will exceed the occupant’s expectations.

b) To line up with other competitors using our unique services we provide for the

occupants.

c) To able to change the perception of occupants regarding safety and cleanliness of our

commercial space.

d) To satisfy business’ customers by offering an accessible and comfortable location with

additional safety benefits

1.7. Map

The study considered the whole city of Cabanatuan City as the target market for the

business as showed in Figure 2.

Cabanatuan City serves as the third district in Nueva Ecija and was subdivided into 89

barangays. Some of the barangays are Aduas Sur, Aduas Centro, Aduas Norte, and Sangitan East

where “Les Espazios” will be located.

Figure 2. Map of Cabanatuan City

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 CHAPTER I
INTRODUCTION

Background of the Study

“Small businesses are the heart of a community and strengthens the local economy”. (Shepard,

2018). Establishing a business is one of the ways to generate income and to ensure a lifelong

profitability for an individual or for a household. It is a great way to control your money without

letting others control you or determine your worth. It can also make someone discover things and

manage related costs with the idea of succession. (DeBusk, 2015). By that, businesses continue to

make the economic bloom as it turns Cabanatuan City as the economic hub of Nueva Ecija with

about more than 4,105 registered businesses with combined capital investments of P600 million

as of October. (Magpayo, 2014). Its population is over 300 000 as of 2015 making it rich with

potential customers and emerging entrepreneurs. (Philippine Statistics Authority, 2015). Although

the City does not have that much manufacturing establishments, its dynamic service sector and

agriculture makes it a potential place to establish your own business. Its business opportunities is

beyond its range. (LCP Secretariat, 2014). Furthermore, according to (VisitmyPhilippines, 2014)

Cabanatuan is becoming a major investment hub and is considered as one of the most competitive

city for doing business in the country.

There are many things that one has to consider in establishing a business and one of it is

determining the type of real estate industry that an entrepreneur wants to push through. The real

estate industry refers to real properties including lands and improvements such as buildings, roads,

structures, fixture and utility systems. It has four (4) types: Land, Residential, Industrial, and

Commercial. (CFI Education Inc., 2018). From this four types, it is indirectly shown that

commercial real estate can generate more income with less expense rather than the other types

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indicated. Commercial real estate includes properties that are essential for the business in

generating income through capital gain or rental income. (View the Space, 2016). Aside from that,

an entrepreneur needs to choose whether to offer a service or product to its customer. According

to Root (n.d.), a service business is much more easy to manage as it offers the service of people

rather than manufacturing your own product that comprises much greater costs and inventory.

Also, a product cant be easily changed unlike services that can be customized according to what

the customers wants. Moreover, a product has its great deal of competition for having the same

product as others while a service can be differentiated to others by creating several innovation and

making it dynamic.

But the troubles of an entrepreneur doesn’t end by just determining what kind of business is

to be established. According to (Romero, 2011), finding the perfect location for your business is

one of the crucial and one of the important things that needs to be considered before you establish

a business. It needs to be carefully chosen for it makes way to make one’s business successful.

Location can affect many aspects in the business such as its operations, total sales and even the

expenses it generates (Hamel, 2016). A lot of businesses have faced their liquidation due to its

failure to find the right location. However, finding a good location is never easy. An entrepreneur

needs to consider a bunch of things before settling its business to a location.

One of this is finding a space rather than initially buying a real estate because most start-up

business do not have enough funds to afford their own place and settle on finding a rental space

for their business. (Portman & Steingold, 2018). But there are only few available lots and legal

rental spaces for a business. Given the situation, it leads the researchers to conduct a feasibility

study that will provide a rental space for entrepreneurs for their emerging businesses entitled “A

Feasibility study on establishing Rental Spaces inside the city proper of Cabanatuan City”.

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A FEASIBILITY STUDY ON COMMERCIAL SPACES

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 CHAPTER II
MARKET ASPECT

Marketing is a system of business activities designed to plan, price, promote and distribute

want-satisfying goods and services to present and potential customers. It is considered as the

lifeblood of every business transactions because it is a strategic way on how to cope up to the

needs and wants of the costumers, finding opportunities regarding it, introduce and market the

product, achieve customer’s loyalty and patronage. It is everything a company does to gain

customers and maintain relationships with them. It serves as a foundation on making the business

succeed and prosper. (Kenton, 2018). This aspect includes the following topics: demand, supply,

demand supply gap analysis, projected sales, marketing strategies and swot analysis.

The objective of the proposed project is to delight the customers, not just by meeting their

expectation but rather exceeding and going extra mile. Moreover, it’s about profitability.

Marketing aspect serves as the basis of the financial section through the projected demand. Every

business wanted to continuously make profit but the real reason for the business to succeed is to

prioritize the target market. The costumers will be the key factor to achieve the objectives of the

organization.

Objectives:

a) to determine the target market of the business.

b) to analyze the market demand and supply for the business.

c) to utilize the projected demand, supply of the business

d) to analyze the market share for the business.

e) to determine the marketing strategies to be applied in the business.

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2.1 Market Description

“Les Espazios” a commercial building, will provide the target market, which are

the businesses in Cabanatuan City, with commercial spaces for their businesses mainly to

offer an ideal location and a rental space.

The businesses around Cabanatuan City are the proposed target market of the study

who might be potential proponents in looking up a commercial space. There are 5,427

business establishments registered in Cabanatuan City as of 2018 according to the Business

& Licensing Division of the City Hall.

2.2 Survey Questionnaire Results and Discussion

The researchers conducted a survey to different businesses as a basis in projecting

the demand for the services to be offered by the proposed project.

1. Do you usually rent spaces for your business?

Do you usually rent spaces for your business?

Number of respondents Percentage
YES 14 93.33%
NO 1 6.67%
TOTAL 15 100%
Table 2.2.1 Summary of answers for Question #1

2. If we are going to establish a commercial space around Del Pilar St., will

you consider availing our service?

If we are going to establish a commercial space around Del Pilar St., will you consider
availing our service?
Number of respondents Percentage
YES 13 86.67%
NO 2 13.33%
TOTAL 15 100%
Table 2.2.2 Summary of Consumer’s Willingness to avail the service

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 3. What do you consider before choosing the spaces for your business? (You

can choose more than one option)

What do you consider before choosing the spaces for your business? (You can choose
more than one option)
Characteristics Frequency Percentage
PRICE 8 53.33%
EXTERIOR/INTERIOR FEATURES 3 20.00%
LOCATION 11 73.33%
MAINTENANCE AND REPAIRS 2 13.33%
PARKING LOT 7 46.67%
Table 2.2.3 Summary of Businesses’ Considerations on Choosing Rental Spaces

4. How much is the usual rent you pay for the rental space you acquire?
How much is the usual rent you pay for the rental space you acquire?
Price Frequency Percentage
5 000 or less 0 0.00%
5 000 – 6 000 1 6.67%
6 000 – 7 000 4 26.67%
7 000 – 8 000 2 13.33%
8 000 – 9 000 1 6.67%
10 000 or more 6 40.00%
Table 2.2.4 Summary of Businesses’ Payment of rent for their Rental Space

5. What is your preferred price range of a rental space?

What is your preferred price range of a rental space?
Price Frequency Percentage
5 000 or less 2 13.33%
5 000 – 6 000 3 20.00%
6 000 – 7 000 4 26.67%
7 000 – 8 000 1 6.67%
8 000 – 9 000 0 0.00%
10 000 or more 5 33.33%
Table 2.2.5 Summary of Businesses’ Preferred Price Range

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 6. Do you usually sign a contract on how long would you stay on the rental

space? (If yes proceed to question #7, if no proceed to question #8?

Do you usually sign a contract on how long would you stay on the rental space?
Number of respondents Percentage
YES 11 73.33%
NO 4 26.67%
TOTAL 15 100%

Table 2.2.6 Summary of answers on Question #6

7. If yes how long does your business stay on a rental space?

If yes, how long does your business stay on a rental space?

Time Frequency Percentage
Less than 6 months 1 9.09%
6 months 0 0.00%
1 year 3 27.27%
2 years 2 18.18%
3 years 1 9.09%
More than 3 years 4 36.36%
TOTAL 11 100%
Table 2.2.7 Summary of the Length Businesses stay on their rental space

8. Based on your experience, how many is the ideal floor of the building when

renting a space?

Based on your experience, how many is the ideal floor of the building when renting a
space?
No. of floors Frequency Percentage
One-storey 11 73.33%
Two-storey 3 20.00%
Three-storey 1 6.67%
Table 2.2.8 Summary of Businesses’ Ideal No. of Floors in a Bldg.

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 2.3 Demand

Demand is an economic principle which pertains to the consumer’s willingness or

desire to patronize a product or service based on the price set for it. It is the totality and

good indicator of what the target market wants. Demand helps in boosting the economy,

and without it, businesses would fail to progress productively. (Kenton, 2018) Knowing

the demand helps to determine the trend of the products. Analyzing the demand will help

the researchers to project the quantity of products that will be produce yearly.

Many business establishments in Cabanatuan City seeks for commercial or rental

spaces to put up their business instead of buying a lot of their own. Furthermore, some

business owners tend to look for a good commercial place where many customers are in

range than in residential areas. Finding a good location is a priority in putting up your own

business.

Year
Target Market
Ave.
Population 2014 2015 2016 2017 2018
Growth Rate
Business Establishments in 4173 4844 5044 5557 5427 7.01%
Cabanatuan City
Table 2.3.1 Average Growth Rate
(𝑪𝒀−𝑷𝒀)
*Computation for the Growth Rate: GR = 𝑷𝒀

(𝑭𝒐𝒓 𝟐𝟎𝟏𝟓) (𝑭𝒐𝒓 𝟐𝟎𝟏𝟔)

(𝟒𝟖𝟒𝟒−𝟒𝟏𝟕𝟑) (𝟓𝟎𝟒𝟒−𝟒𝟖𝟒𝟒)
= 𝟏𝟔. 𝟎𝟖 = 𝟒. 𝟏𝟑 𝑨𝒗𝒆. 𝑮𝒓𝒐𝒘𝒕𝒉 𝑹𝒂𝒕𝒆 =
𝟒𝟏𝟕𝟑 𝟒𝟖𝟒𝟒
(𝑮𝑹𝟏+𝑮𝑹𝟐+𝑮𝑹𝟑+𝑮𝑹𝟒)
𝟒
(𝑭𝒐𝒓 𝟐𝟎𝟏𝟕) (𝑭𝒐𝒓 𝟐𝟎𝟏𝟖)
(𝟓𝟓𝟓𝟕−𝟓𝟎𝟒𝟒) (𝟓𝟒𝟐𝟕−𝟓𝟓𝟓𝟕) (𝟏𝟔.𝟎𝟖+𝟒.𝟏𝟑+𝟏𝟎.𝟏𝟕+−𝟐.𝟑𝟒)
= 𝟏𝟎. 𝟏𝟕 = −𝟐. 𝟑𝟒 = 𝟕. 𝟎𝟏%
𝟓𝟎𝟒𝟒 𝟓𝟓𝟓𝟕 𝟒

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 Table 2.1 showed the computation of the growth rate of business establishments in

Cabanatuan City. The researchers obtain information for the past five years from the

Business and Licensing Division of Cabanatuan City Hall. It depicted the average growth

rate of 7.01% from year 2014 to 2018. This information is used to estimate the projected

population for the next five years, which is the expected number of business units to operate

in the city.

Target Market Growth From Year

Population Rate 2018 2019 2020 2021 2022 2023 2024
Business Establishments
7.01% 5427 5807 6214 6650 7116 7615 8148
in Cabanatuan City

Table 2.3.2 Projected Population

The average growth rate in the previous table is used to project the population of

businesses from 2018 to 2024. The resulting figures for the projected population for the

next five years was shown in Table 2.3.2. By 2024, 8148 is the predicted the number of

business units in the Cabanatuan City that will bring off more opportunities to the business.

The survey results are used as a basis in projecting the figures shown in the tables

that follow. These figures are the estimated current and projected demand for rental space,

including the service currently availed and the service to be availed by the clients.

Target Market Expected Year

Population Demand
2019 2020 2021 2022 2023 2024
(%)
Business
Establishments in 7.69% 447 478 511 547 586 627
Cabanatuan City
Table 2.3.3 Projected Demand for “Les Espazios”
* 1/13 = 7.69%
Note: The resulting percentage based on the survey is multiplied by the projected
population on the previous table

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2.4 Supply
There are established commercial spaces offering the same services as what the proposed

project will be providing. The following are the commercial spaces within the reach by the

researchers in Cabanatuan City:

Name of the Commercial Space Service Offered

E.V.P. Building Two-storey building with 2 rooms per floor
and a monthly rent of 7 000 – 10 000
Morales Building Four-storey building with 4 rooms per floor
and a monthly rent of 10 000 for occupants
U-zone Commercial Space One-storey building of 3 rooms with a
monthly rent of 7 000 – 8 000
Montes’ Building for Rent Two-storey building with 3 rooms per floor
and a monthly rent of 7 000 – 8 000
Corazon Building One-storey building of 3 rooms with a
monthly rent of 7 000 and more
Table 2.4.1 Commercial Spaces in Cabanatuan City
Table 2.4.1 shows the services offered by different commercial spaces interviewed by the

researchers particularly on how many spaces they offer how much is the monthly rent for the room.

The researchers obtained information from Cabanatuan City Hall that there are a total 323

real estate dealership business within the city for the calendar year of 2018 on which 48 of these

are commercial building and rental spaces. Therefore, it is estimated that the five (5) commercial

spaces constitute 14.7% of the total current market supply for the entire city of Cabanatuan.

Target Market Current Market Share of 5 Total Market Share of all

Commercial Spaces Commercial Spaces

Business Establishments 32 218

Table 2.4.2 Market Share of the Competitors

Note: *32/14,7%

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 It is important to determine the total market share of the competitors in order to project the

supply of the business for the following years as it will be its basis in determining its current and

future supply. The total market share of the five commercial spaces in Del Pilar St. is estimated

to be 32 which is based on the survey made by the researchers and by the figures and number of

customers that they accommodate within a year. Through this value, the researchers is able to

determine and estimate the total market share of all the competitors or commercial spaces in

Cabanatuan City. It was derived from the current market share of the commercial spaces and the

percentage of the 5 commercial spaces out of the 48 existing ones.

Service Growth From Year

Offered Rate 2018 2019 2020 2021 2022 2023 2024
Commercial/Re
326
ntal Space 7.01% 218 233 249 266 285 305

Table 2.4.3 Projected Supply for “Les Espazios”

*Note: The researches assumed the same growth rate as the population of the business
establishments in projecting the supply of services in the coming years.

2.5 Demand Supply Gap Analysis

The demand and supply gap is computed by subtracting the total projected demand

for the service offered from the total projected supply of those service. This gap represents

the unsatisfied demand which the proposed project can target and eventually serve.

Service Year Demand Supply Gap

2019 447 233 214
2020 478 249 229
Commercial/Rental 2021 511 266 245
Space 2022 547 285 262
2023 586 305 281
Table 2.5.1 Demand-Supply Analysis for 5 years

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 The positive gap showed that entering in real estate business in Cabanatuan City is still

recommended.

2.6 Projected sales

Pricing Policies

Rental fees should be a fair reflection of the value of the services given for the

client, taking into account:

a. The legal agreements between the owner and the aspiring occupants.

b. The initial contract signing which specifically focus on the length of time the

occupant will stay on the rental space and the amount of the rent set for it.

c. The degree of responsibility in performing this service entails.

d. The agreement between the responsibilities of the occupant emphasizing on the

maintenance and obligation on the space offered to them.

Based on the survey made by the researchers, 33.33% of business establishments have

their preferred price range of 10 000 and more while 26.67% preferred a 5 000 – 6 000

range of rent for their commercial space. On the other hand, based on the survey conducted

to five (5) commercial spaces, their usual rental fee for their occupants ranges from 7 000

and up.

Due to the subsequent data gathered by the researchers, the pricing range of the

commercial space to be established will start to a minimum rental fee of 10 000 and up to

a maximum of 15 000 a month. The minimum contract of operation of the occupant will

be six (6) months but can be subjected to change depending on the performance or

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 relationship of the business. The pricing range set for the service to be offered by the

commercial space considered many factors such as the size of the space, the capability of

the business, the demand for commercial spaces, the type of business and the competitors

Pricing Range

Target Customer Monthly Rental Fee

10 000 – 15 000 (in a course of 6 months

Businesses in Cabanatuan City
initial operations)

Table 2.6.1 Pricing Range for the Target Customer

The total projected revenue was computed based on the pricing range set by the

researchers for the rental of the commercial space. The maximum range of 15 000 was

multiplied to the estimated number of businesses that the business will cover or will served

for the 1st year which is equivalent to the number of rooms of the commercial building.

The researchers assumed an estimate constant revenue of the business for the

following years of its operations due to its confinement to the number of rooms of the

building thus limit its customer that avails the service.

Year Commercial Space Rental

1st
year (2019) 540 000
2020 540 000
2021 540 000
2022 540 000
2023 540 000
Total 2 700 000
Table 2.6.2 Projected Revenue for 5 years

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2.7 Marketing Strategies
2.7.1. Place Strategies

Les Espazio will be located in Del Pilar St., Cabanatuan City. Del Pilar is

considered to be a strategic location for a commercial building because it lies within the

intersection along Bitas, Cabanatuan City where many potential customers can be found

which would be an ideal location for businesses who are looking up for a suitable location

to start up a business.

Different high schools and universities such as Nueva Ecija High School,

Flowerlane Montessori Children’s House, Regina Assumpta Kids Academy Inc. etc are all

near the proposed location. The location of the business will be accessible enough to meet

the needs of the target market.

Moreover, it is near to other landmarks and populous places like freedom park,

crossing, hospital, Harvest hotel and many others that is a great opportunity for people to

know the commercial building and inquire on renting up a space to establish their

businesses or to patronize the business present in the commercial building.

2.7.2. Promotion

2.7.2.1. Poster

Posters will be placed in our store. The design of the poster can able to catch

the attention of the customers because of the information provided as well as its design. It

is a great strategy to convince the market to avail the service that was offered and a suitable

way to introduce the business in the market. Five posters will be produced which are good

for five (5) months.

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 2.7.2.2. Facebook Page

Consumers continues to be involved in the modern world in terms of

acquiring their needs and preferences. Surfing the internet has become one of the easiest

ways to have quick access to information and trends. The proponent will be creating a

public facebook page that is in the range of possible customers and internet users. This will

be a great help for them to know the concept and details of Les Espazios. Moreover, it will

also provide good communication relationship with the people, for the researchers will be

in an active interaction with potential customers by answering their questions or concerns

and give them insights and suggestions that will help them decide and encourage the idea.

2.7.2.3. Flyers

Flyers can convey wide range of possible buyers for it can be brought and

viewed in other places. The store will produce 25 flyers per day and be distributed to

various businesses around the location. It will be given in the first three (3) months of the

business until it gets its loyal customers.

2.7.2.4. Sales Plan

The sales plan aids on making a good impression to the existing and/or potential

customers of the business. The business will see to it that the customers will be satisfied

by providing quality services and at the same time, actively monitoring their feedbacks

and satisfaction. The owners should be in active communication to its customers to check

their state in the space and make necessary agreements and improvements that they will

demand. Emphasis will be more on client retention over new client acquisition since it

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 will be difficult for the business to acquire customers that will stay over a long time in the

space that will be offered. Moreover, loyalty and trust for existing customer yields a

favourable and constant sales for the business and it makes the business to be in

continuous operations and in a harmonious relationship to its customers.

2.8 Competitive Position

SWOT Analysis

Strengths

 The location of the business is accessible enough to meet the target market.

 The business doesn’t need maintaining monthly expenses once it was fully

established.

 The value of the land and building of business will continue to generate higher

value as time pass by.

 It provides modern communication tools including print ads and website that will

enable to build a connection between the business and the customers.

Weaknesses

 The return of the capital investment is undetermined or rather will take a long time

to be reimbursed back to the owners

 There is no ideal peak season for potential customers to deluge resulting to

difficulty on analysis for the business’ prosperity

 There can be difficulty on generating stable income because there could be times

where the spaces that is up for rentals will be vacant

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Opportunities

 The businesses desperation for available and ideal lot or space to put up their

businesses is a great opportunity for the business to progress.

 Businesses who wanted to branch out their business or those who are up for

franchising are good opportunities for the business.

Threats

 Other commercial buildings and massive businesses within the vicinity will be the

great competitors of the business

 The growing number of businesses within the area might cause a declination on the

customers of the business

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 CHAPTER III
TECHNICAL ASPECT

After determining the details about the marketing aspects such as marketing strategies,

promotions, and etc. the technical factors will be analyzed. The cost of the materials used in

establishing the rental spaces will be deduced. Also, the location of the business will be shown as

well as the technology that may be used while the business is operating. The technical aspect will

indicate the logistic plan on how the business will deliver and provide its service. The expense of

the establishing process should be reasonable and based on factual costing to verify the feasibility

of the business.

Every technical aspect will be taken into account for the technical soundness analysis

which will serve as basis in physically reaching the market (thebalancecareer.com).

In regards with projecting the technical feasibility, the following technical requirements

needed by the business will be as follows:

1. By stating the:

 The quality of the service to be offered

 The supplies used

 The labor needed

 The utilities needed;

2. By showing the estimated total project cost and enumerating the major items of capital

cost; and

3. By providing information about the source of capital of the project.

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Objectives:

1. To identify the kind of service the business offers which includes the description and

its processes.

2. To determine the process in establishing a business

3. To illustrate the actual size of the rental spaces as well as its layout

4. To determine the supplies necessary and the materials used in building the

infrastructure

5. To emphasize the regulations of the business

6. To know the ways for the maintenance of the establishments

3.1. Services Offered

 Space Rental with parking lot and security features

3.2. Service Processes

3.2.1 Space Rental

3.2.1.1. Contract

A contract will be issued by the owner/manager once a confirmed leaser emerged.

The contract will include the time period a business will stay in the rental space which

should be in a minimum of 2 years. The extent of responsibility of the leaser and the owner

regarding the spaces should also be incorporated in the contract. Moreover, the financial

agreement is important to be covered in this contract to avoid complications in both sides.

After the issuance of contract, both the leaser and the leasor must agree with the terms

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stated. The signature of the leaser and leasor in the contract will be the final step for this

matter. Note that the owner must ensure a copy disseminated to the leaser and must produce

more than 4 copies of the contract.

3.2.1.2. Financial Agreements

The leaser is required to pay one month advanced and two months deposit as per

the law says in before the business can be installed in the rented space. The one month

advanced will be the one month’s rent upfront before moving in while the two months

deposit will be a security deposit that covers any unexpected damage to the property or any

outstanding utility bills the leaser might experience during the rental period.

The leaser should also comply with the monthly payment in a certain date which is

5 days advance every month. If the leaser failed to pay on its due date, the owner will

charge daily penalty to its monthly rent which will cost 100 pesos.

3.2.1.3. Utilities

Since the commercial building will only be involved in lending rental spaces, the

water and electric bill of the leaser’s business will not be covered in the monthly rent. The

leaser should take full responsibility on those bills as they were consumed in their business.

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 3.2.1.4. Security

The whole building will be surrounded by 2 closed-circuit televisions or CCTVs,

one at the left side front and one at the right side front. Through the installed CCTVs, the

security of each leasers and their spaces will be ensured. The instillation of the CCTVs will

be covered by the owner. However, the computer or any equipment that will be used to

monitor the feeds from the CCTV will be produced by the leaser.

3.2.1.5. Exit Period

The leaser has the responsibility to inform the leasor 6 months prior to their exit

and once the rental time period has been reached, the leaser has to ensure that the space is

in its good condition before leaving. Any damage on the space during the rental period of

the leaser will be charged as an additional payment. Right after a leaser leave the space,

the owner is free to look for another leaser that will occupy the available space.

3.2.2. Other facilities

Each spaces will have parking lots for the leasers and for their customers. A parking lot for

the leasers and for the customers of the leasers will be placed in front of the spaces to accommodate

more customers who brought their vehicles.

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3.2.3. Taxes

The owner of the commercial building will have to pay different taxes issued by the

municipal and the city. One of those is the Real Property Tax (RPT) annually as per stated under

Local Government Code of the Philippines (Republic Act No. 7160). The cost of the tax will be

ranging between 1 percent of the assessed value of the real property. The owner must pay RPT to

the city or municipal treasurer’s office and any delay on payments will cost penalties (Lamudi,

2017).

3.2.4. Maintenance and Repairs

Each leaser is in-charge in maintaining the cleanliness and sanitation of each space.

However, the whole building should be maintained by the owner annually to retain its edge to the

other competitors-the image of the building as a new and attractive looking building. The owner

must allocate funds for the maintenance and repairs of the building.

3.3. Building Location

Location is important in establishing a commercial building since it is the most considered

factor by the leasers in choosing spaces for their businesses. A good location will guarantee the

environmental safety from flood zone, which is a common environmental hazard in Cabanatuan

City, and a good property access. The location should be accessible from customers to ensure the

leasers of their consistent income. The location of the proposed business will be in a vacant lot

along Del Pilar Street around the city proper of Cabanatuan City, Nueva Ecija near Harvest Hotel.

25 | P a g e
Figure 3. Vicinity Map

26 | P a g e
3.4. Building Layout

Figure 4. Floor Plan of “Les Espazios”

The building will be established in a 300 square meters lot with 3 spaces. Each space will

have a measurement of 100 square meters each that will be composed of the actual space for

business, parking lot, and a comfort room. The parking lot in front of a room measured 4x10 meters

also there will be a comfort room which measured at 1x1.5 meters.

The interior of the spaces will have a glass front door to match the level of the target

businesses being the professional services and medium-sized businesses. Each space is a studio

type room and can be customized anytime. Any equipment that the leaser wish to put inside the

space will be allowed given that it will be all under the payment of the leaser.

27 | P a g e
3.5. Building Maintenance

The commercial building owner will lease the spaces for 15,000 each per month. The

researchers concluded that further renovations and maintenance must be made to meet the needs

and demand of the leasers. The following costs were estimated:

Carpentry Works

Description Quantity Unit Unit Cost Total

Paint 6 Gallon 675.00 4,050.00

Paint Roller 2 Gallon 299.00 598.00

Labor 2 1,000.00

Total ₱5,648.00

Table 3.5.1 Materials needed for building maintenance

28 | P a g e
3.6. Equipment and Fixtures

Equipment and Fixtures will be purchased in Cabanatuan City through cash. All equipment

and fixtures are on its brand new state to ensure the quality and usefulness of each. Ensuring the

quality and usefulness of those will responds to the demands and wants of the leasers. The price

of each equipment and fixtures were from trusted sources.

Unit
Description Source Use Qty Total
Cost

CCTV camera Hong Used for surveillance, 2 740 1,480

Kong monitoring, and theft

Bazaar prevention.

Glass Doors Hong An equipment that is used 3 7,511 22,533

Kong for the entrance of

Bazaar customers in a room.

Hong Important in maintaining 3 240 720

Kong cleanliness and sanitation

Bazaar inside and outside a room

Trash Bin

Total ₱24,733

Table 3.6.1 Materials needed for equipment and fixtures

29 | P a g e
3.7. Utilities/Facilities

The building’s electricity will be provided by CELCOR, water by Cabanatuan City Water

District. Each spaces will be having 3 three different meter for both electric and water bill. The

following cost for instillation of electricity and water will be listed below.

Description Unit Cost Quantity Total Cost

Electricity 1,500 3 4,500

Water 9,000 3 27,000

Total 31,500

Table 3.7.1 Instillation Cost of Utlities

30 | P a g e
 CHAPTER IV
MANAGEMENT ASPECT

Management is considered as the brain of the business as it dictates the flow of action of

the business. Managerial entities are responsible for exercising organizational resources to ensure

that their organizations achieve their purposes.

The management aspect includes the tasks and responsibilities of a qualified manager

which are crucial for the success of the business, fulfillment of the legal requirements and other

pre-operating tasks needed when establishing a new business, and ensuring the proper governance.

Objectives

1. To determine the form and capitalization of the business

2. To establish the intention and ambition of the business

3. To ensure the proper workflow of authorities

4. To identify managerial positions and responsibilities

5. To comply with legal requirements

6. To settle the policies of the business

4.1. Form of Ownership

The form of ownership that will be implemented by the business is sole proprietorship. A sole

proprietorship is when a business is owned and managed by a single individual. This means that

the business owner is solely liable for all business transactions, profits, losses, assets, and

31 | P a g e
liabilities. The owner will also be in control for all the decision-making needed for the business.

Sole proprietorship enjoys the advantages such as ease of formation, maintenance, and

dissolution with no corporate tax and minimal legal requirements.

4.2. Capitalization

The sole owner, Mr. Licinio S. Valino will allot an amount of P5,150,000.00 from his personal

savings and profit from his other businesses. The amount will be used to cover pre-operating

expenses, accounting expenditures, operating expense, cost of goods sold, and other forms of

payment used when establishing a building.

Major Expenses Amount in Pesos

Lot/Land Value 3,000,000

Construction of Building 2,000,000

Other expenses 150 000

Total 5,150,000

Table 4.2.1. Division of Capital

4.3. Principles of the business

4.3.1 Vision

Les Espazios see itself to go above and beyond the standardized services for commercial

real estate industry that is fulfilling to our customers.

32 | P a g e
4.3.2. Mission

Les Espazios provide high level of service while exceeding our customer’s expectations.

The best interests of our clients will always come first and we will place the clients’ concerns

ahead of our own in each and every transaction, as we are dedicated to the development of long-

term client relationships

4.3.3. Core values

S- Suited for business owners who wishes to explore their entrepreneurial abilities

A – Accessible location for ease of customers

F – Fair rates at affordable prices

E – Ensure that the building has up-to-date structure with the required safety and legal

necessities

4.4. Organizational Structure

Owner/
Manager

Tenant/Customer Tenant/Customer Tenant/Customer

Figure 5. Organizational Structure

33 | P a g e
4.5. Manpower Requirements

1. Owner/Manager

1.1. Requirements

1.1.1. Good communication skills and negotiations skills

1.1.2. Compliant to leaser's preferences and request

1.1.3. Must be level headed in times of critical decision making situation

1.1.4. Can discriminate tenants based on their ability to pay rent and the sustainability of
their business

1.2. Job Descriptions

1.2.1. Will be in charge in managing the overall operations of the business

1.2.2. Will be in charge of major decision making activities and overseer of business

1.2.3. Will collect monthly payments on time

1.2.4. Will handle repairs and fixtures in certain obligations in a timely and efficient
manner

1.2.5. Will ensure safety requirements of the building

1.2.6. Will handle renovations and improvements

1.2.7. Will warrant minimal vacancy cycles

1.2.8. Will handle taxes and annual renewal of business permits used for operations

1.2.9. Will take responsibility for any courses of actions of business whether failing or
succeeding

34 | P a g e
4.6. Legal Requirements

4.6.1 Department of Trade and Industry

A business name registration certificate must be acquired from the Department of Trade and

Industry with a validity of five years, the following requirements are as follows:

 Two accomplished copies of application form of business name registration signed by the

sole proprietor

 Two (2) original valid government ID with specimen signature of the sole proprietor

 Payment of registration fee (Php 500.00) and documentary stamp tax (Php 15.00)

4.6.2. Business Permit And Licensing Office

Business Permit and Licensing Office (BPLO) is in charge of processing all business

permits within the City. The office ensures that business owners experience ease in doing business

by implementing structured process of applying and renewing business permits.

The acquisition of legal permits applicable by the type of business is crucial for the pre-

operation of business. The business must obtain a business permit for new applicants to officially

register in the BPLO. The following requirements are as follows:

1. Fully accomplished form of New Business Permit Applications signed by the sole

proprietor

2. Picture of establishment and sketch of business location

3. Barangay Business Clearance with signature of the officiating officer

4. Business Name Registration from the Department Trade and Industry

5. Occupancy Permit
35 | P a g e
 6. Tax Declaration

7. City Planning and Development Office Approval

8. Payment for fees and permits

After the obtaining the new business permit, the business must then proceed to file for the

application of business permit tax in the City Business Licensing and Investment Promotion

Office. The following requirements must be submitted to be granted the business permit tax:

1. Occupancy Permit

2. Barangay Clearance

3. Valid Fire Safety Inspection Certificate

4. Payment of the business tax of business activities essentially consists of sales and

services (P3000.00)

5. Overall payment for Regulatory Fees and Charges (P965.00) zoning fee (P50) from the

City Planning and Development Office, and the Fire Safety Inspection Fee (P307) from

the City Fire Department

Requirements Fees and Charges

Business Tax for Business Activities Essentially P3000
Consists Of Sales And Services
Regulatory Fees and Charges: P965
City Mayor’s Permit and Fee on Business P300
Permit Fee on Occupation of Calling P200
Permit Fee for Billboards, Signs, Signboards, and P150
Advertisements
Garbage Collection Fee P315
Zoning Fee P50
Fire Safety Inspection Fee P307
Total Fees and Charges P4 322
Table 4.6.2. Expenses for Legal Requirements

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4.7. Policies and Agreements

Policies are a set of rules to be followed by the leasers implemented by the management in-charge.

1. REQUIREMENTS. Leasers must first submit a Rental Application Form complete

with the following requirements

A. BIR Clearance

B. Two pieces of 2x2 pictures

C. Tax return

D. Signed copy of Policies and Agreements

2. DUE DATES. Rent is due at every 28th of the month. Any payment later than that

will be considered late. Notice of payment every month will be reminded one week

prior to the due date. Two weeks of grace period will be allotted for late payments

with no penalties however any late payments exceeding the period will pay a

penalty of P100.00 for every succeeding day. Early payments for rent are

encouraged to avoid additional payments.

3. PERSON IN CHARGE. Mr. Licinio S. Valino is the official person in charge and

owner of the business. Payments and inquiries will be received only by her and

other authorized personnel such as her nuclear family and authorized helpers. If

payments are handled through other authorized personnel, please ask for

verification notes.

37 | P a g e
4. RENTAL PAY. Rent may be paid thru cash, checks, or fund transfers. Official

receipts will be issued after complete payment of rent. The leasers and rentee will

received copies for every transactions.

5. REPAIRS. The owner is liable for every repair on the base room. Any additional

appliances and furniture added by the leaser will be in his/her responsibility. If the

tenant chooses to modify the room with major renovations such as changing floor

tiles, etc, please notify the management.

6. PERSONAL LIABILITIES. Leasers must expect to pay individual water and

electric bills. Eventhough our management issues repair, if we deemed the leaser

is responsible for any misuse or negligence of property then he/she will be

personally liable of bill of expense. Cleanliness must also be maintained by the

tenant.

7. LEASING. Leasers are expected to lease the rental space for a minimum of six

months. After expiry of initial lease, the issuance of renewal will be automatically

processed monthly thereafter. If the tenant wishes to vacate the rental space, please

give a 6-months-notice

8. RENTAL INCREASE. From time to time, market conditions may necessitate an

increase in your rent. Should this situation occur during our management, you will

be given ample notice in writing by the office.

9. EVICTIONS. Failure of payment for two straight months will and any unlawful

activities be executed with the leaser’s compliance and discretion will

38 | P a g e
 automatically qualify for evictions. Should the management initiate evection

proceedings and defiance of the occupant is met, legal actions will ensue.

10. BREACH OF CONTRACT. A failure to perform any promises and terms stated

in a contract without legal excuse is a form of deviance in law. Should this

situation happen during the rental period, legal actions will be conducted.

4.8 Project Time Table

Activities Duration and Time

Pre-Operating Activities:

Gathering of requirements for legal permits 1 day

Application for business name registration in the Department 1 day

of Trade and Industry

Application for business permit for new applicants in the 5 days

Business Permit and Licensing Office

Fire Inspection from City Fire Department 1 day

Zoning Inspection from City Planning and Development 2 day

Construction of building 6 months

Blessing of New Building 1 day

Start of Operation

Table 4.8.1. Project Time Table

39 | P a g e
 CHAPTER V

FINANCIAL ASPECT

The financial aspect of the feasibility study quantifies the results of the marketing,

technical, management aspect and legal phase of the project study and express in peso terms the

possible outcome of operating the project.

This chapter covers the presentation of the expected financing requirements and projected

financial statements which includes the statement of financial position, statement of financial

performance, changes in equity and cash flows to assess the profitability and feasibility of the

project.

Objectives:

a. to make a realistic, complete, and conservative estimate of the total cost to put up a project

of its capital requirements,

b. to make complete, safe, and realistic projections of operating cost and revenues

c. to determine the company’s earning performance and the soundness and liquidity of its

financial positions

d. to be able to project the feasibility of the project based on the financial statements and

ration used.

5.1 Major Assumptions Used

40 | P a g e
 The following assumptions are considered in computing the projected financial

statement of the firm:

 Revenue acquisition will be constant annually based on fixed amount of rent from

leasers.

 Repairs and maintenance expense in the first year is zero and on the second year is 5,

648 and will remain constant for the succeeding years.

 The owner withdraws 60% of the net income every year.

 Non-current assets have a salvage value of 10% of its cost and depreciated using a

straight line method.

 Taxes to be paid annually were derived based on the 1% value of the building and

permit & licences were estimated based on the documents believed to be annually paid.

Department of Trade and Industry ₱530.00

Building Permit 1 500.00

Requirements from Cabanatuan City Hall

City Mayor’s Permit & Fee on Business 300.00

Permit Fee on Occupation of Calling 200.00

Permit fee for Billboards, Signs, Signboards and Advertisements 150.00

Garbage Collection Fee 315.00

Business Activities essentially consists of Sales or Services 3 000.00

Zoning Fee 50.00

Fire Safety Inspection Fee 307.00 4 322.00

41 | P a g e
Special Requirements for Real Estate Dealer/Commercial

Building Business

Occupancy Permit 500.00

Tax Declaration 300.00 800.00

Total ₱7 152.00

5.1.1 Total Project cost/Capital Requirement

Project Cost Statement

Fixed Capital Cost
Land ₱3, 000, 000.00
Building 2, 000, 000.00
Office Equipment & Fixtures 24, 733.00
Utilities and Facilities 31,500.00
(Instillation)
Total ₱5 056 233.00
Pre-operating Capital Cost
Permits & Licenses
DTI Permit 530.00
Building Permit 1 500.00
City Hall Permit 5, 122.00
Total 7 152.00
Initial Working Capital
Cash (Equity) 86, 615
Total 86, 615
Grand Total ₱5 150 000.00
Table 5.1.2. Project Cost Statement

42 | P a g e
 5.2 Sources of Funds

The proposed project will require an initial capital of five million one hundred fifty

thousand pesos (₱5 150 000) to cover the necessary start-up cost and an amount of cash to support

daily operations.

5.3 Projected Financial Statements

Statement of Financial Performance

Year 1 Year 2 Year 3 Year 4 Year 5

Service Revenue

Rent Revenue ₱540, 000 ₱540, 000 ₱540, 000 ₱540, 000 ₱540, 000

Total ₱540, 000 ₱540, 000 ₱540, 000 ₱540, 000 ₱540 000

Less: Operating
Expenses
Taxes, Licences & 30, 000.00 34, 872.00 35, 484.00 36, 108.24 36 744.96
Permits
Repairs & Maintenance 0.00 5, 648.00 5, 648.00 5, 648.00 5, 648.00

Depreciation Expense 77 581.54 77 581.54 77 581.54 77 581.54 77 581.54

Total Operating ₱107 581.54 ₱118 101.54 ₱118 713.54 ₱119 337.78 ₱119 974.5
Expense
Total Projected 432 418.46 421 898.46 421 286.46 420 662.22 420 025.50
Operating Income
Total Projected Net ₱432 418.46 ₱421 898.46 ₱421 286.46 ₱420 662.22 ₱420 025.50
Income
Table 5.3.1 Projected Statement of Financial Performance

Statement of Cash Flows

Pre-operating Year 1 Year 2 Year 3 Year 4 Year 5

Operating Activities

43 | P a g e
Cash received from ₱540 000 ₱540 000 ₱540 000 ₱540 000 ₱540 000
rental fees
Cash paid for:

Taxes, Licenses & -7 152.00 -30 000.00 -34, 872.00 -35, 484.00 -36, 108.24 -36 744.96
Permits
Repairs & 0.00 -5, 648.00 -5, 648.00 -5, 648.00 -5, 648.00
Maintenance
Net cash flow -7 152.00 510 000.00 499 480.00 498 868.00 498 243.76 497 607.04
provided by (used
in) operating
activities
Investing Activities

Cash paid for:

Utilities/Facilities -31 500.00 0.00 0.00 0.00 0.00 0.00

Office Equipment & -24 733.00 0.00 0.00 0.00 0.00 0.00
Fixtures
Land -3 000 000.00 0.00 0.00 0.00 0.00 0.00

Building -2 000 000.00 0.00 0.00 0.00 0.00 0.00

Net cash flow -5 056 233.00 0.00 0.00 0.00 0.00 0.00
provided by (used
in) investing
activities
Financing Activities

Capital Contribution 5 150 000.00 0.00 0.00 0.00 0.00 0.00

Capital Withdrawal -259 -253 139.08 -252 771.88 -252 397.33 -252 015.3
451.076
Net cash flow 5 150 000.00 -259 -253 139.08 -252 771.88 -252 397.33 -252 015.3
provided by (used 451.076
in) financing
activities
Net Cash Flow 86 615.00 250 548.924 246 340.92 246 096.12 245 846.43 245 591.74

Add: Beginning 0.00 86 615.00 337 163.924 583 504.844 829 600.964 1 075
Cash Balance 447.394

44 | P a g e
 Cash & Cash ₱86 615.00 ₱337 ₱583 ₱829 ₱1 075 ₱1 321
Equivalent, ending 163.924 504.844 600.964 447.394 039.134
Table 5.3.2 Projected Statement of Cash Flows

Statement of Changes in Owner’s Equity

Pre-operating Year 1 Year 2 Year 3 Year 4 Year 5

Beg, Capital ₱5 150 000.00 ₱5 150 000.00 5 322 967.384 5 491 726 764 5 660 241.344 5 828 506.234

Projected 0.00 432 418.46 421 898.46 421 286.46 420 662.22 420 025.50
Income
Withdrawals 0.00 -259 451.076 -253 139.08 -252 771.88 -252 397.33 -252 015.3

End, Capital ₱5 150 000.00 5 322 967.384 5 491 726.764 5 660 241.344 5 828 506.234 5 996 516.434

Statement of Financial Position

Pre-operating Year 1 Year 2 Year 3 Year 4 Year 5

Assets

Current Assets

Cash & Cash 86 615.00 337 163.924 583 504.844 829 600.964 1 075 447.394 1 321 039.134
Equivalents
Prepaid Permit and 7 152.00 7 152.00 1 504.00 1 504.00 1 504.00 1 504.00
Licenses
Total Current 93 767.00 344 315.924 585 008.844 831 104.964 1 076 951.394 1 322 543.134
Assets
Non-current Assets

Land 3 000 000.00 3 000 000.00 3 000 000.00 3 000 000.00 3 000 000.00 3 000 000.00

Building 2 000 000.00 2 000 000.00 2 000 000.00 2 000 000.00 2 000 000.00 2 000 000.00

Office Improvement 0.00 0.00 5 648.00 5 648.00 5 648.00 5 648.00

Office Equipment & 24, 733.00 24, 733.00 24, 733.00 24, 733.00 24, 733.00 24, 733.00
Furniture
Utilities & Facilities 31,500.00 31,500.00 31,500.00 31,500.00 31,500.00 31,500.00

45 | P a g e
Less: Accumulated - 77 581.54 155 163.08 232 744.62 310 326.16 387 907.70
Depreciation
Total Non-Current 5 056 233.00 4 978 651.46 4 906 717.92 4 829 136.38 4 751 554.84 4 673 973.3
Assets
Total Assets 5 150 000.00 5 322 967.384 5 491 5 660 5 828 506.234 5 996 516.434
726.764 241.344

Liabilities & Equity

Equity

Owner’s Capital 5 150 000.00 5 322 967.384 5 491 5 660 5 828 506.234 5 996 516.434
726.764 241.344
Total Liabilities & ₱5 150 5 322 967.384 5 491 5 660 5 828 506.234 5 996 516.434
Equity 000.00 726.764 241.344
Table 5.3.3 Projected Statement of Changes in Owner’s Equity

Table 5.3.4 Projected Statement of Financial Position

5.4 Schedules

Depreciation Schedule

Description Total Cost Salvage Useful Life Annual

Value Depreciati
on
Building ₱2 000 000.00 ₱200 000 25 ₱72 000.00

Office 24, 733.00 2,473.3 5 4,451.94

Equipment
& Fixtures
Office 5,648.00 - 5 1,129.60
Improveme
nt
Total ₱77 581.54
Annual
Depreciatio
n
Table 5.4.1 Depreciation Schedule

46 | P a g e
5.5 Financial Statement Analysis

Payback Period

Payback Period

Annual Payback Expected

Cash Flows Period Payback
Period
Investment ₱5 150 000 - -

Year 1 510 000 10.10

Year 2 499 480 10.31

Year 3 498 868 10.32

Year 4 498 243.76 10.34

Year 5 497 607.04 10.35 10.28

Table 5.5.1 Payback Period

The expected payback period is estimated at 10.28 years.

Return on Investment

Return on Investment

Year 1 2 3 4 5

Net Income 432 418.46 421 898.46 421 286.46 420 662.22 420 025.50

Average 5 322 967.384 5 491 726.764 5 660 241.344 5 828 506.234 5 996 516.434
Investment
ROA 8.12% 7.68% 7.44% 7.22% 7.00%

Table 5.5.2 Return on Investment

47 | P a g e
 CHAPTER VI

SOCIO-ECONOMIC ASPECT

The socio-economic aspect tackles the significance of the feasibility study and the business

itself to the society and to the economy. It will discuss how the business affects the society as a

whole.

6.1. Economic Analysis:

6.1.1. Payback Period:

PAYBACK PERIOD 9.54 YEARS

NET ANNUAL CASH FLOW P540, 000.00
INITIAL INVESTMENT P5,150,000.00
PAYBACK PERIOD:
(NET ANNUAL CASH FLOW 540, 000.00/5,150,000.00
/ INITIAL INVESTMENT) 9.54 Years
TOTAL PAYBACK PERIOD
Table 6.1.1. Payback Period

6.2.2. Economic Rate of Return:

Current Value of Investment – Cost of Investment

× 100
Cost of Investment

5, 996, 516.434 – 5, 150, 000.00

× 100
5, 150, 000.00

48 | P a g e
 16.4372

6.1.3. Internal Rate of Return:

INTERNAL RATE OF RETURN -10.343%

YEAR Cash Flow
YEAR 1 ₱290 615.00
YEAR 2 ₱490 647.00
YEAR 3 ₱690 439.00
YEAR 4 ₱889 986.20
YEAR 5 ₱1 089 223.7
Table 6.1.3. Internal Rate of Return

6.1.4. Profitability Index:

PROFITABILITY INDEX 0.2115

PRESENT ₱1 089 223.7
VALUE OF FUTURE CASH FLOWS
INITIAL INVESTMENT ₱5,150,000.00
PROFITABILITY INDEX:
PRESENT VALUE OF ₱1 089 223.7/₱5,150,000.00
FUTURE CASH FLOWS
/ INITIAL INVESTMENT
= PROFITABILITY INDEX =0.2115
Table 6.1.4. Profitability Index

6.1.5. Average Yearly Return on Investment:

AVERAGE YEARLY RETURN ON INVESTMENT 7.49%
ROI AT YEAR 1 8.12%
ROI AT YEAR 2 7.68%
ROI AT YEAR 3 7.44%
ROI AT YEAR 4 7.22%
ROI AT YEAR 5 7.00%
Table 6.1.5. Average Yearly Return on Investment

49 | P a g e
6.2. Social Desirability/Impact of the Feasibility Study

The conducted feasibility study will benefit the following:

To the owner of the business, the feasibility study will measure the viability of the business

in terms of:

a) Marketing aspect;

b) Technical Aspect;

c) Management Aspect; and

d) Financial Aspect

To the leasers, the study will give assurance that the established commercial space business

has been researched thoroughly and effectively which directly benefit them as a whole.

6.2. Social Desirability/Impact of the Project

The project/business will bring impact to the following:

To the owner of the business, the business will generate additional income which will

further increase his financial capacity in the society.

To the leasers, the commercial spaces will be their foundation in establishing their desired

business by offering secured, accessible and affordable location.

50 | P a g e
 To the government, the business will contribute to the funds and taxes that is used in the

further growth of the city.

To the economy, establishing a commercial space for newly opened businesses will create

employment in the locality.

51 | P a g e
 CHAPTER VIII
CONCLUSION AND RECOMMENDATION

Conclusions:

Based on the results obtained from the study, the following conclusions are drawn:

1. As the population increases, the available land for commercial areas decreases while the

demand for commercial spaces increases.

2. After the thorough research and investigation of the profitability, acceptability and

sustainability conducted by the proponents, it was concluded that establishing “Les

Espazios” is feasible.

Recommendations:

Based on the conclusions made, the following suggestions were offered to further improve

the project:

1. Further studies should analyse long term projected income of more than 10 years

2. The business owner should consider the expansion of the commercial space to maximize

the land and to increase the annual income.

3. Splitting the area of one commercial space should be studied to accommodate small time

business owners more.

4. Increase rent appropriately over time to follow trends of the market.

52 | P a g e
BIBLIOGRAPHY

53 | P a g e