Office-space glut gone

The excess supply of office space will likely vanish by next year, Jones Lang LaSalle Leechiu (JLLL) said.

Lindsay Orr, JLLL chief operating officer, advised property developers to start building office projects this year since they would be ready for occupancy by 2012 when demand stabilizes.

“Next year, there may be a shortage of commercial space. It’s a signal for developers to pick up more office buildings,” Nando Camus, JLLL chairman, said on the sidelines of the press launch of the Asia CEO Awards.

Orr cited Fort Bonifacio as the most ideal place to build office buildings. He said demand has been “buoyant” in the area as tenants consider moving away from Makati.

The level of interest in Fort Bonifacio has increased significantly in the last five years, as shown by the counter bids of six other developers following SM Land Inc.’s unsolicited proposal to develop 33 hectares of prime lot in Bonifacio South lot, Orr said.

“We are seeing a movement towards Fort Bonifacio because rental rates are more competitive. The fact that it is master-planned and designed means all amenities haven’t grown in a more haphazard manner,” he said.

Besides JLLL, Ayala Land Inc., Filinvest Land Inc., Megaworld Corp., Robinsons Land Corp. and Rockwell Land Corp. purchased the Terms of Reference (TOR) for the eligibility requirements in the selection of BCDA’s joint venture partner for the project.

Even as tenants move to Fort Bonifacio, JLLL said the Ortigas area would still be a “very significant” business district because of its proximity to the Asian Development Bank.

“Ortigas will always be significant, but the thing is it’s sort of running out of space,” said Orr.

JLLL is one of the main presenters of the first Asia CEO Awards, which aims to recognize individuals and organizations that have contributed the most to develop the business capability of the Philippines on the international stage.

The awarding ceremony will be held on November 11 at the Dusit Thani Manila. –Krista Angela M. Montealegre, Reporter, Manila Times