PH Needs More Office Spaces
Technological advances have paved the way for improved quality of life in Southeast Asia. In the business world, these developments have led to greater opportunities--especially for those who are in the business process outsourcing sector. Automation, cloud computing and mobile Internet are some of the avenues that companies can explore to improve and implement not only outsourcing but flexible hours of work and collaborative work. Hence, this “fourth industrial revolution”, a term coined by the report released by real estate consultancy Jones Lang Lasalle, Inc. (JLL), leads only to more demand for office space in the Philippines.
“Office is the new residential,” said real estate consultant from CBRE Philippines, Inc.
Case in point, Bonifacio Global City in Taguig--Ayala Land’s first office project, has sold 95% of units for sale only a year post launch for The High Street South development’s first tower and has sold the same amount for its second tower. Another example would be Makati’s Park Triangle Plaza, which has also sold 82% of its units within the year’s first quarter.
On average, office spaces cost at least P200,000 per square meter, and yet, unit vacancies are low, ranging from 2-3% for both Makati and BGC. This kind of rate, according to Morgan McGilvray, director of CBRE, is considered healthy.
Soon, Makati and Taguig won’t be the only central business districts in the country. High demand calls for leasing in other cities such as Quezon City, Manila, Pasay, and Muntinlupa. This so-called “property boom” is enhancing the real estate business in impressive ways--such as the concept of towns--which include residential areas, hotels, 24-hour restaurants, stores, gyms--being constructed around said BPO centers. This is what McGilvray liked to call a BPO-centric ecosystem.
This high-speed progress isn’t going to slow down anytime soon. In Southeast Asia, there is an increasing 6% annual demand of office space and an economic growth of 5%. The Philippines, together with Kuala Lumpur, are one of the SEA countries expected to meet this expectation for the next five years. According to JLL, if this progress is maintained in the next few years, by 2030, 20% to 30% of office stock would be comprised of co-working and serviced offices.