By Ted P.
Torres (The Philippine Star) | Updated June 2, 2013
MANILA,
Philippines - Demand for office space in Metro Manila will remain exceptionally
strong, with tenants – particularly business process outsourcing (BPO)
companies – aggressively taking up locations in key business districts to
nearly full capacity, a property research firm said.
In a report,
Pinnacle Real Estate Consulting Services Inc., a service provider for buyers,
real estate lenders and investors, said developers are moving at an accelerated
pace to be able to capture the demand.
It said with BPO firms on the frontline,
building developers are expected to enjoy between 94-98 percent occupancy rates
in their projects.
Pinnacle said
pre-leasing has regained its popularity among incoming locators, with new
buildings going up and developers racing to finish their respective projects.
“The limited
space has opened the doors for developers and investors looking at old
buildings that can be renovated or re-developed, to be re-introduced to the
market,” the report said.
The Makati
central business district (CBD) and Bonifacio Global City (BGC) remain the
preferred office locations, although Ortigas Center, Taguig City and Quezon
City are key alternative sites.
Makati CBD,
in fact, is the first choice for major companies and global businesses seeking
the ideal site for their headquarters. Most of the buildings are populated by
BPOs and call centers with international operations and magnitude.
Meanwhile,
the frantic pace to acquire lots in BGC has driven prices to surprisingly high
levels, Pinnacle noted.
“This is
actually good as both CBD and BGC stand to complement each within a reasonable
distance, which makes the two attractive to foreign locators with integrated
operations,” the Pinnacle report said.
It cited the peripheral areas of BGC as an
emerging site, which could make them autonomous and self-sustaining. These
include the five-hectare Forbestown Center, 50-hectare McKinley Hill,
15-hectare Uptown Bonifacio, and McKinley West, a 34.5-hectare mixed-use project near Manila Polo Club.
Overall,
Pinnacle said the strong growth of the real estate sector across the country
affirms its dominant role in the surging economy.
It has
likewise stimulated allied occupations such as trading in construction
materials, local development, tourism, housing, and the business sector in
search of office, commercial and retail establishments.
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