by: Sarah Joson
Wednesday, March 11, 2015 | Outsourcing News |
The Philippines’ ability to provide cost-effective and scalable solutions to global investors is one of the top reasons why business process outsourcing is thriving in the country.
During last year’s fourth quarter, office space occupancy was said to have skyrocketed in renowned business districts such as Bonifacio Global City, Makati, Ortigas, Quezon City, Alabang, and Pasay City. As a matter of fact, vacancy rates for Premier and Grade A buildings in Metro Manila dropped from 2.53 percent to 2.13 percent quarter-on-quarter.
As the demand for office space continues to intensify, landlords have been seen increasing leasing rates - P1,306.08 per square meter for Prime office space and P898.87 for Grade A in Makati CBD. As for Bonifacio Global City, the rate is now P848.34 per sqm; P604.71 per sqm in Ortigas; and P606.84 per sqm in Alabang. As for Quezon City, rate is P627 per sqm and in Pasay - P650.47 per sqm.
Rick Santos, Chairman, founder, and CEO of CBRE Philippines, said amidst the price hike in rental rates in major business districts, investors are still willing to pay for the quality and value they can get by operating and expanding in the Philippines.
One of the strategies that developers are looking at to address the growing demand is augmenting projects within and outside the Manila’s business districts.
Investor interest has also been observed in ‘sunshine’ industries which include hotel and leisure, retail, and gaming.
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