BPO industry office space to double by 2017 – CBRE

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RAPPLER

BY AYA LOWE

June 6, 2013

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MANILA, Philippines – Office space occupied by the steadily growing business process outsourcing (BPO) industry will double by 2017, according to real estate consultancy company CB Richard Ellis (CBRE) Philippines.

“Taking a conservative approach, the BPO industry will double up by 2017 and will come up to close to 5 million square meters,” said Joey Radovan, vice chairman of CBRE, at a press briefing on Wednesday, June 5.

According to Radovan, the main factor behind BPO industry growth is cost. “The Philippines is one of the most cost-effective and attractive destinations for BPOs and real estate investors in Asia,” he said.

The BPO industry is on track to hitting its 2016 targets of $25 billion revenues and 1.3 million employees, according to the Information Technology and Business Process Association of the Philippines (IBPAP).

“To reach our 2016 targets, we reiterate that it is imperative that we sustain and strengthen the work we are doing with government. We have received impressive support from President Aquino and his teams in the executive branch and we were able to pass key legislation needed by the industry,” said Jomari Mercado, IBPAP president and CEO, at the Cebu ICT and BPO Conference, on Wednesday, June 5.

According to Mercado, the industry earned about $13.2 billion in revenues for the country in 2012, a growth of 19% from 2011.

It is this growth that boosts office leasing transactions. Vacancy rating of offices in Metro Manila dropped to 3.21% in the first quarter of 2013 from the record 3.43% in the fourth quarter of 2012.

“Cost-sensitive BPO firms tend to locate themselves in areas which offer the lowest lease rates,” said Radovan.

Currently, Alabang, Muntinlupa and Quezon City offer the lowest lease rates.

According to CBRE figures, occupancy rates were set at 97% across Metro Manila’s central business districts (CBDs) during the first quarter of 2013, an increase from the 90% recorded since 2011. The growth of BPO full-time employees was highest in BGC, Muntinlupa and Quezon City.

The following is a breakdown of Manila’s different CBD’s according to CBRE:

  • Makati – High-value global and local firms tend to situate their offices in the CBD because Makati currently offers the highest quality Grade A and premium office buildings available in the market.
  • Fort Bonifacio – Over the years, Fort Bonifacio has undergone continuous growth with the development of numerous office buildings catering to both corporate back-office and headquarters. Leasing activity in the district was largely driven by the continuous expansion of offshoring and outsourcing firms.
  • Ortigas – The business district offers the lowest lease rates as it tries to compete with other business districts that are offering newer and more efficient office spaces.
  • Alabang – BPO offices in Alabang remain fully occupied while traditional offices, which have observed continuous drop in occupancy, were able to leverage the continuous drop in demand by cutting its rates.
  • Quezon City – Leasing activity in Quezon City is constrained because of the extremely low vacancy level in the district as offshoring and outsourcing firms continue to occupy the office spaces in the district.

Source: http://www.rappler.com/business/30704-bpo-office-space-double-by-2017

Regent Parkway

To all the administrative, security and management personnel at Regent Parkway:

I’d like to take this opportunity to THANK YOU sincerely for all your hard work.Every day we come home to clean, well maintained and safe building, and it is thanks to the contributions of each and every one of you.

I’ve had the pleasure to be a tenant of this building for the last couple of years, and I have never, ever had a single problem, not ever one. Everything is managed with the utter most professionalism, and many times we take that for granted. I know that it doesn’t happen by magic, but because of the effort from each and every one of you.

Unfortunately, I am being relocated to my home country, reason for which I will stop living here by the end of the month. Believe me, if it was up to me, I would never leave; since my stay here has been very happy and fulfilling.

I’ve had the opportunity to live in many places, but the upkeep and operation in this building, together with the warmth from every member of the personnel, are unparalleled.

I didn’t want to leave without sharing with you my appreciation for all you have done for me; your friendly smiles, the cheering in the early mornings when I drag myself up for a run, making me feel safe and taken care of, but mostly, for taking an otherwise ordinary job and making something extraordinary out of it.

I wish you all the best and thanks again.

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