New office supplies in Bonifacio Global City (BGC), one of the central business districts (CBDs) in Metro Manila, are set to provide spaces particularly for the strong demand in the business process outsourcing (BPO) industry.
KMC MAG Group, a real estate service provider, noted that demand of office spaces from the BPO industry will continue as more firms are moving or expanding their operations in the country.
The industry also targets of creating 1.3 million jobs by 2016.
“Current landlord market trend in the office sector is most likely to continue due a strong
demand from the outsourcing industry,” KMC MAG said.
In its 2015 Metro Manila Property Outlook, KMC MAG noted there will be some 560,000 square meters (sqm) new office spaces expected across CBDs this year, with almost half of it located in BGC.
“It is likely to bounce back as supply peaks in 2015 with 11 new buildings and 287,000 sq m to be introduced to the market,” KMC MAG mentioned.
The Report also showed that BGC’s current office spaces stock reached 778,867 sqm with some 956,290 sqm in the development pipeline from 2015 to 2018.
In 2014, office take-up in BGC only reached 94,500 sqm which declined by 44.1 percent compared to its previous year as there were more building turnovers in 2013.
“At present, office spaces for rent in BGC cost an average of Php850 per square meter.
Another factor why investors and businesses still favor setting up office spaces in BGC is due to the lower taxes imposed by the local government, compared to other business districts,” KMC MAG added.