Office space take-up seen to rise

TAKE-UP of office spaces continues to rise, underscoring the bullish outlook of multinational firms in the Philippines, according to data released by a real estate consultancy firm.

In a statement, Jones Lang LaSalle Leechiu said about 400,000 to 500,000 square meters of office space will be constructed a year from 2011 to 2013 in Metro Manila business districts in anticipation of the sustained influx of multinational firms.

The growing optimism of the business sector in the inherent attractions of the Philippines as a premier business destination is also reflected in key cities outside Metro Manila like those in Pampanga, Cavite and in Cagayan de Oro where office supply has doubled or even tripled in the past few years.

“The stream of office buildings coming into the market in Manila and other cities is the result of sustained demand for office space in the country, which in turn indicates a generally favorable business environment and the depth of Filipino talent,” said Lindsay Orr, JLLL chief operating officer.

Data from the consulting firm, which transacted 92 percent of office space in Bonifacio Global City, showed that 237,078 square meters of office space in Metro Manila came on stream last year. Another 434,369 square meters is expected this year and 521,949 square meters in 2012.

Next wave business process outsourcing cities such as Pampanga and Cavite now have 62,719 square meters and 67,810 square meters, respectively, of office space, of which more than a third were built in the past year or so.

Bacolod, Davao, Iloilo, Cagayan de Oro, Baguio and Laguna have experienced similar growth spurts in office space, JLLL said.

JLLL is one of the main presenters of the 2011 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 winners will be announced during the awarding ceremony in November. –KRISTA ANGELA M. MONTEALEGRE, Manila Times