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News Release

MANILA

Metro Manila and prov'l business districts will continue to grow

Business districts' growth forecast


MANILA, Philippines — New business centers in Metro Manila and key provincial centers will continue to grow up to 2015 as a result of the rapid and sustained growth of the outsourcing and call center industry, according to reports by Jones Lang LaSalle Leechiu (JLLL), the largest international property services firm in the Philippines.

Phillip Anonuevo, JLLL associate director, said that from two dominant business districts at the end of the 20th century, there are now at least 10 in Metro Manila and 10 more emerging in key Philippine cities – most of them fuelled by the outsourcing and call center industry which was valued as a US$ 9-billion industry in 2010.

JLLL represents 10 of the 12 top outsourcing and call center companies operating in the Philippines. It has also handled 90 percent of outsourcing and call center lease transactions in key provincial cities from Baguio to Davao City.

Anonuevo said that over 50 percent of all office space leased in the Philippines since 2006 has been taken up by key players of this bourgeoning industry which generates demand for an average 300,000 to 360,000 sqm of office space annually.

In Metro Manila, the fastest growing business district is Bonifacio Global City where JLLL was actively involved in 92 percent of leasing transactions.

“Its proximity to Makati and accessibility to most of the labor pools of Metro Manila has fuelled the rapid growth of BGC,” said Anonuevo.

The company was appointed sole leasing agent by nine building owners in Bonifacio Global City who expect their developments to be completed within the years 2012 and 2013. These developments include the NAC Building to be completed in the third quarter of 2012; and in the fourth quarter, Ecotower, W Fifth Avenue, and W Global Center. In the second quarter of 2013, RSB Corporate Center is set to be finished.

The attractions of Bonifacio Global City are also shared by the adjoining McKinley Hill development with Megaworld boosting development in the area.

Being the largest business district, Makati remains an attractive location. At least two prominent office buildings including the SLC Building along Ayala Avenue are set to open in the last two quarters of 2012 and to be leased out by JLLL.

Also filling up quickly with tenants related to the BPO sector are Ecoplaza and Southgate Tower in the Chino Roces Avenue area and which were completed earlier and are also represented by the company.

In the last few years, the Bay City area anchored by the Mall of Asia development has likewise emerged as a business destination.

Anonuevo said the success of the E-com center dispelled all misconceptions about the area.

“Bay City has become accessible to public transportation and call centers and other firms located there easily attract employees from Paranaque and Las Pinas and even parts of Cavite.”

JLLL is leasing out Aseana One on Bradco Avenue which is set for completion in the second quarter of 2012.

Pockets of Quezon City – like the UP Ayala Technohub developed by Ayala Land, Eton’s Centris development, and The Gateway Tower in Cubao – likewise continue to evolve as their respective skylines change with the addition of new office towers occupied by employees of outsourcing and call center firms.

The same is true with pockets of Muntinlupa including the Madrigal Business Park where Kingston Tower is located. Meanwhile, Anonuevo disclosed that the company continues to actively network with its offices in a number of locations in the US and Europe to attract companies to do business in Metro Manila as well as provincial capitals.

“Many top BPO corporations have expanded beyond Metro Manila to cities like Baguio, Sta. Rosa in Laguna, Lipa in Batangas, Iloilo, Dumaguete and Davao seeking to tap the services of fresh labor pools. As far as we can see, the industry will continue to provide impetus to the office sector and other related sectors up to 2015,” he said.