PROPERTY giant Ayala Land Inc. (ALI) expects to increase its gross leasable office area portfolio to 825,000 square meters by the end of the year amid continued demand from business process outsourcing (BPO) companies.
In a statement, ALI said it will continue to build workspaces across the country in the coming years in order to meet growing demand from the still-expanding BPO sector.
At present, ALI has 715,000 square meters of gross leasable office area.
With BPO companies continuing to expand their operations in the country, demand for office space will remain firm, according to real estate advisor CBRE Philippines.
“Full-time employment in the BPO industry is expected to grow with more companies expanding their operations in the Philippines. Total employment is expected to reach 1.3 million within the sector,” the report said.
Earlier reports said the local BPO industry is targeting to grow its revenues to $25 billion and its workforce to 1.3 million this year.
Ayala Land offices head Carol Mills said they expect to see high demand for office space in the next few years.
“The higher occupancy we experienced last year will continue,” Mills said.
In the first quarter of 2016, ALI reported that revenue from sales of office spaces grew 35 percent from a year ago to P1.19 billion while revenue from office leasing rose 13 percent to P1.36 billion driven by “the higher occupancy and average rental rates of existing buildings and the positive contribution of new offices.”
Mills said the company is “well-positioned” to adadress the continued market demand for office spaces as office development and leasing business is part of ALI’s platform in developing its large-scale mixed use estates across the country.
“The company is currently focused on transforming over 6,000 hectares of property nationwide into economic growth centers similar to its established estates — Makati, Bonifacio Global City (BGC), Ayala Center Cebu, and Nuvali,” ALI said.
ALI has continued to expand its office leasing business in recent years with the completion of such projects as BGC Corporate Center and Bonifacio Stopover, the Alabang Town Center BPO facility, the addition of office buildings in the UP-Ayala Land Technohub, and eBloc 4 at the Cebu IT Park.
Mills also noted that ALI is present in several locations outside of the nation’s capital.
“We have established our presence not only in Makati, BGC, Quezon City and Alabang, but also in seven provinces – Baguio, Laguna, Cebu, Iloilo, Bacolod, Davao, Cagayan de Oro, bringing jobs closer to where the talent pool resides,” Mills said.“Our office spaces are developed according to global standards and are complemented by preferred amenities and the most reliable facilities management services.”
Under ALI’s 2020 Vision, the company is aiming to have 1.8 million square meters of office space by 2020.