Office demand soars as the Philippines remains a top outsourcing destination
Home to world-class Business Process Outsourcing (BPO) facilities that work with some of the world’s biggest name-brand companies, the Philippines has everything going for it in terms of real estate development and property sale and leasing.
According to Claro dG. Cordero Jr., head of research, consulting and valuation of Jones Lang LaSalle (JLL) Philippines Inc., the offshoring and outsourcing (O&O) sector has remained the major driver of demand for office space rentals. He added that new urban areas are being developed in order to accommodate the expansion of O&O/BPO companies, as well as multinational companies.
A thriving landscape
Prime and Grade A office spaces can be found in the business districts of Ortigas Center in Pasig City, Makati and Bonifacio Global City (BGC) in Taguig City. While Makati prevails as the top location in Metro Manila in terms of quantity, with over 3.5 million square metres, and price, majority of upcoming office developments are set to rise in BGC, with 1.94 million square metres to be completed by 2020. Avida Land, a subsidiary of Ayala Land Inc. (ALI), recently launched the 26-storey Capital House, its second boutique office building with a total of 222 office units, including whole floor units, for sale from P9.9 million to P25.6 million. The project is set for completion by end of 2017.
New urban areas within and outside the Metro are also growing in earnest to supply companies with office spaces. Emerson Philippines recently opened a $35-million facility, its fourth to date, at SM Cyber West Avenue in Quezon City. ALI, on the other hand, acquired the Aegis building in Cebu IT Park for P435 million to expand its office leasing business. Philippine Long Distance Telephone Co. (PLDT) has also announced an interest in establishing an IT hub at Palacio del Gobernador in Intramuros, Manila.
Enrique M. Soriano III, Ateneo Program Director for Real Estate and Senior Adviser for Wong+Bernstein Business said that the office demand and supply market will always mirror the state of our economy. He cited the sustained gains attributed to the BPO sector as part of the contributing factors for the trend.
In the neighborhood of big players
The abundance of office spaces all over the country strengthens the Philippines’ position as a highly competitive outsourcing destination – at par with the rest of the world.
SHORE Solutions, a provider of outsourcing services delivered through a flexible range of outsourcing models, is located in four fully redundant and well-appointed office buildings in Metro Manila’s central business districts. Three of which are found in BGC.