Demand for office space in PH hits record high as of Nov
MANILA, Philippines - Demand for office space in the Philippines rose to a record high as of November, mainly driven by business process outsourcing (BPO) firms, property consultancy firm Jones Lang LaSalle Leechiu said in a statement.
In the 11 months to November, demand for commercial space reached 425,000 sqm., 18% above the annual average demand of 360,000 sqm. in 2011, Sheila Lobien, director for project leasing at Jones Lang LaSalle Leechiu, said in the statement.
BPO companies accounted for 75% of the total demand while other multinational and local firms held the remaining 25%.
"Even before preferred office buildings are completed, companies are committing to take up space, indicating strong optimism and heightened business activity projected by the leading real estate consultancy for 2013," Jones Lang LaSalle Leechiu pointed out.
"Pre-commitments are backed up by signed lease agreements between parties, and advanced rent and security deposits are paid," the firm explained.
Lobien said pre-commitments hit 175,922 sqm. in the 11 months to November, more than double the 68,358 sqm. recorded in the same period last year.
Phillip Añonuevo, associate director for markets at Jones Lang LaSalle Leechiu, noted the ongoing Entertainment City project in Parañaque has driven growth in hotels and other businesses near the area.
"Investment in the hotels and hospitality real estate asset class is experiencing record growth," he said in the statement.
"In addition, commercial properties such as Aseana One in the same district have become an attractive destination for firms seeking to do business in the proximity of the entertainment district," he continued.