Despite the struggles of the BPO industry in the Philippines, office take up is continuously growing and making a rebound. This means that there will be more office leasing Philippines for businesses willing to venture or come back to the country to start their operations.

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2019 is a new chapter for the Philippine business process outsourcing (BPO) industry.

According to a report by BusinessWorld, real estate consultancy firm Leechiu Property Consultants (LPC) noted the industry is currently making a rebound for the second year. So far, two contributing factors for this are the increase in wages in the United States and the weakening of the Philippine peso, encouraging multinational firms to venture again within the Philippines.

LPC explained the companies that left the country are realizing the Philippines has still more to offer despite the ongoing political risks. Also, these companies were reminded how difficult it was to start a business in another place. In the past two years, these companies went back to India, the US, Poland, Europe, Malaysia.

“They got reminded of how difficult it is to do business in other places,” LPC Chief Executive Officer David Leechiu said via BusinessWorld. “They saw that it is still better to do business in the Philippines. The call center industry is going to keep getting more expensive…This will force many companies to come here despite all our issues.”

2018 marked the year for the BPO sector for it was seen as the largest demand driver for office spaces within the country.

“They’re still growing but at a significantly slower space. That’s very alarming,” Mr. Leechiu said. he also cited the lack of offices with acceditation from the Philippine Economic Zone Authority (PEZA). Buildings that have a PEZA accreditation often have benefits for the businesses from the government.

LPC said the sector was responsible for the 290,000 sq.m. out of the total office space demand of 1.16 million sq.m. in Metro Manila in 2018. However, 2018’s record is 18% lower compared to 2017’s, which reached 355,000 sq.m., and 40% lower than 2016’s, with a 485,000-sq.m. record.

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