More office, residential dev’t seen in Clark, Subic

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The Philippine Star

By Louella D. Desiderio

April 25, 2013

 

MANILA, Philippines – Development of more office spaces and residential properties are seen in Clark and Subic with the upcoming investments and expansion of manufacturing and business process outsourcing (BPO) firms in these areas which in turn would drive higher demand, property consultancy firm CBRE Philippines said.

CBRE Philippines said that due to infrastructure developments, businesses have started to expand from Metro Manila to peripheries, making Central Luzon a major investment destination.

With increased economic activity seen in the areas of Clark in Pampanga and Subic in Zambales, in particular, more office spaces and residential properties are also expected to be developed there.

The firm noted that new areas of investments for the manufacturing sector have been opened in the two areas due to the tensions between Japan, Taiwan and China amid territorial disputes, as well as the continuous development of infrastructure between the freeport zones there.

It said renewed growth in the manufacturing industry was seen with foreign firms choosing to locate in the Clark and Subic Freeport zones.

Apart from manufacturing, growth in the BPO industry in the two areas has also been observed.

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With the Philippine Economic Zone Authority (PEZA) removing the fiscal incentives for new developers of information technology (IT) parks in Metro Manila and in Cebu, CBRE Philippines said Metro Clark remains an attractive area for new IT facilities.

“The PEZA resolution has emphasized Metro Clark as a high potential investment destination,” it said.

As new locators and existing BPO firms expand in these areas, more developments are likewise expected.

“With the entrance of new locators and expansion of previous tenants in the BPO industry, the real estate office segment is seen to expand in the coming years,” CBRE Philippines said.

As more investments are made in these areas, expatriates would also demand for quality residential developments.

“Residential demand is seen to grow with the upcoming investments and expansion,” it said.

“Vertical residential developments are now seen rising in the area as developers try to maximize their investment on land,” it said further.

Orion Support Incorporated (OSI)

Dear Rick,

Following up from my initial request to you for support in finding a new office location for our company, Orion Support Incorporated.   Well, we moved in to the LTA Building on Perea Street, fifty meters or so from Paseo de Roxas this weekend, only a 4 minute walk to AmCham and under excellent terms.

While I think you assigned both Morgan Mcgilvray and Sherdil Rana to support our original request; as you know, Morgan was very tied up with his wife giving birth during the period we identified this location and negotiated with the landlord, Mr. Mike Arroyo. Yes, the former First Gentleman. But in my short interaction with Morgan, I can see that he is a solid, young professional.

With regards to Sherdil, I want to tell you that with 35+ years of interviewing hundreds and hundreds of individuals, I was impressed with his professionalism, focused support and “can-do” attitude  from the point of identifying our potential office space, and through the negotiation stages prior to the signing of our 6 year contract.  I was impressed with his considered opinions, insightfulness with regards to Philippine business culture and his sage advice related to our strategy in the negotiation process.  Sherdil was able to negotiate a rental rate per square meter about 150 – 200 pesos less than the going rate in this area, and with only a 7% increase after 24 months. Add to that, he secured for us three parking slots at no additional cost, two months security deposit versus the standard three, and two months advance rent to be applied to the front end of our contract versus the back end as is the case in most rental contracts. And, he got the landlord to repaint the entire office with three coats of mildew resistant paint at their expense.   But best of all, we were given a 6 year lease, with only having to give two months notice and forfeit only our two month security deposit to move out anytime with no additional penalty!

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