There is still a very strong demand for office spaces in Metro Manila because of the many companies seeking to set up their headquarters in major key business districts. Most of these companies are in the business process outsourcing (BPO) industry.
In an update posted on Philstar.com on June 2, 2013, it was stated that while key business districts are almost full capacity, office space demand remains high. Pinnacle Real Estate Consulting Services Inc., which is a service provider for real estate investors, lenders, and buyers, claimed that developers are rushing to meet the ever-growing demands. One sector that is driving up demand is none other than outsourcing firms.
While Ortigas, Taguig and Quezon City are deemed as ideal locations for businesses, two key areas are considered as the most preferred: Makati central business district (CBD) and Bonifacio Global City (BGC). Among the two, the former remains the top choice of large corporations and global firms. However, BGC has the potential to be the next great location. In fact, the strong demand for lots in BGC has increased prices considerably.
New structures are being built in anticipation of new tenants, with pre-leasing becoming a popular option. Since preferred business districts already have high occupancy rates and space has become limited, building developers have been compelled to consider the potential of old structures. Pinnacle’s report indicated that old buildings will be used to meet the demand after they have been renovated or redeveloped.
Pinnacle believes the surge in demand for real estate across the nation asserts the major role real estate development plays in the continued growth of the Philippine economy.