Despite the slow year in 2017, the office leasing sector is on the rise as demand is increasing within the country. Aside from that, the country has lower rental rates compared to Singapore or Hong Kong. There are many prime locations available in the country as there are buildings being constructed dedicated to outsourcing to places outside Manila, such as Cebu, Davao, and Pampanga to name a few.
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Maximizing space is an essential trick in utilising every square meter possible. In the Philippines, there’s an increase in firms building office space near transportation hubs, according to Commercial real estate services company Cushman & Wakefield Philippines.
“Another new concept may be how they are building offices near or on top, actually, of transportation hubs that are being built, like for example we have for Ayala, and then we also have the one for Parañaque Integrated Terminal Exchange, so there would be an office component to that as well,” Francis Adrian H. Viernes, manager of research and consultancy of Cushman & Wakefield Philippines, told BusinessWorld.
It’s like hitting two birds with one stone — it’s like a win-win situation for both firms and employees. Imagine walking a short distance to get from or to work. Even clients can have alternative access to travelling. Apparently, this can be seen as a good move as demand in the country in terms of office spaces in increasing, all thanks to business process outsourcing (BPO) companies.
“The information technology and business process management sector, or IT-BPM will continue to take a huge chunk of office demand in 2019,” Mr. Viernes said.
“For 2018, (IT-BPM) has regained a bit of strength, and for 2019 we’re expecting that to continue because all the uncertainties that we had when it comes to like the fiscal incentives, because of the policies that were being laid out, all the uncertainties have not provided anything that could negatively affect the business, so far,” he added.