By Louella D.
Desiderio (The Philippine Star) | Updated June 6, 2013 - 12:00am
MANILA,
Philippines - Office occupancy rate in Metro Manila hit a record high in the
first quarter amid high investor confidence given the country’s positive
economic performance, real estate services firm CBRE Philippines said.
Data
presented by the firm in a briefing yesterday showed that the occupancy rate in
the office sector was at 97 percent across Metro Manila’s central business
districts in the first quarter of 2013.
It noted that
occupancy rate in Metro Manila has consistently been above 90 percent since
2011.
Joey Radovan,
CBRE vice chairman and head of global corporate services, said the business process outsourcing (BPO) sector is
still the biggest driver for demand in the office market.
“The reason
why they (BPOs) come here is really the cost,” he said, noting that the Philippines
offers the cheapest cost for offices in Asia.
He said that
real estate occupancy cost accounts for between 11 to 15 percent of the BPO’s
expenses.
For this
year, he said, the firm estimates that office space take up in Metro Manila
will reach 450,000 square meters, about the same as last year’s.
Apart from
demand from the BPO sector, he noted that there is likewise robust requirement
from corporate firms.
For his part,
CBRE Philippines chairman and founder Rick Santos said that with the pace and
general trend across Asia Pacific geared toward efficient commercial real
estate, new developers are advised to consider green construction.
“Green is the
new gold in real estate development,” he said.
While there
are still a few certified Leadership in Environment and Energy Design (LEED)
and Building for Ecologically Responsive Design Excellence (BERDE) office
developments in the country, he noted that occupancy rates in these buildings
are significantly high.
“As the
outsourcing and offshoring sector gains strength in the country, we see more
occupiers and developers prioritizing flight to quality, with green buildings
becoming more the norm than the exception,” he said.
For
residential properties, the firm said strong demand is still expected in Metro
Manila given the growing number of overseas Filipino workers (OFWs) and BPO
employees.
Jan Custodio,
CBRE head for global research and consultancy, said demand for both
condominiums and single-detached units in Metro Manila remains strong.
The demand,
he said, is coming from the rising number OFW and BPO employees.
He noted that
BPO full-time employees alone grow by approximately 30,000 every year.
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