Demand for PH office space breaks record

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The office space market in the Philippines is setting new records, led by demand from business process outsourcing (BPO) companies and multinationals, indicating growing business confidence, according to one of the country’s largest property consulting firms.

In a briefing on Monday, Jones Lang LaSalle Leechiu’s (JLLL) director for project leasing, Sheila Lobien, said that from January to November 2012, demand for office space rose to a total 425,000 square meters, and may rise further by yearend.

This level is at least 18 percent higher than the annual average demand of 360,000 sqm recorded in 2011.

Non-BPO firms consisting of multinational and local companies accounted for 100,000 sqm, or 25 percent of current demand, she said.

More importantly, companies are already committing to take up space even before office buildings are completed, indicating strong optimism and higher business activity projected for 2013.

Pre-commitments are backed up by signed lease agreements between parties, and advanced rent and security deposits are paid by the lessee.

Lobien said pre-commitments more than doubled in January to November 2012 as compared to the same period last year.

“In the 11 months of 2011, we recorded pre-commitments of 68,358 square meters,” said Lobien. “In 2012, the figure over the same period shot up to 175,922 square meters.”

JLLL studies also noted that a number of companies pre-committed to office space that would be completed as far forward as 2014.

The consulting firm’s findings confirmed a recent study of 22 cities in the Asia-Pacific region conducted by the Urban Land Institute entitled “2013 Emerging Trends in Real Estate.”

The study noted the increased attractiveness of Manila in terms of both investment and development prospects vis-a-vis investors, developers, property company representatives, lenders, brokers and consultants.

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  • GaggerAlert

    I ask this, if someone could give any initiate driven by the current admin, then he’s commendable.

    However, if he’s just riding the wave of success already coming in before he stepped in office, then give credit where its due.

    The funny thing with our current leader is, when something good happens, he takes credit. But when something moronic happens, guess who takes the blame? :)

    Come one, this script is already running for several years now, someone should’ve got the gist. 

    • nardong_tutpik

      Just keep on cleaning the government to the utmost of your ability is good enough.  Less corruption in tax collection, less corruption in government expenditure then more money goes to project with better return of investment and higher multiplier effect to the economy is good enough.

      Even the international community and foreign investors have acknowledged the Pnoy’s effort on good governance, hence the big inflow of capital and investments.. hence the very low interest rates due to abundance of capital.  Low interest rates encourages investment and consumption.. better economic growth.

      I hope you can connect the dots.

      • GaggerAlert

        How would you even know if its less or more? Is it also based on your perception?

        The international community is still investing in Indonesia FYI, we’re left with scraps. The last time I saw of ease of doing business, its the government whose the problem. So, where’s good governance with that? Bunch of red tapes.

        From time immemorial, who do you think has the most investment of foreign currency? Isn’t it the OFWs?

      • crocodiledundee

        GaggerAlert I will eat you I am a croc hahahaha kaw naman masyado ka namang walang bilib ke PNoy termino nya ito sa walang basagan ng trip. Tapos na termino ni GMA at pasalamatan natin sya dahil napaunlad nya pinas, d cya nangurakot, maayos lahat, lumakas ang investments taas ng popularity ratings nya…at higit sa lahat umunlad ako pati na mga buwayang katulad ko hahaha… merry christmas cool lang oK? 

      • GaggerAlert

        wehhhh?? who ever said that she didn’t get anything?

        to namn c croc o. sisingit nalng, sablay pa.. hehehehe

  • jian_sadako

    First of all, there’s no perfect person, no perfect organization by man, no perfect institution by man and no perfect president. Kaya para sa akin, nakadroga ang mga naghahanap ng perfect na president. I did not vote for Pnoy but I like to political and economic climate now. I feel it. Alam ko di lahat ramdam ito, but at least nararamdaman pa din ng iba and hopefully lahat na (probably in the succeeding administration if trend will continue).

    Mas gusto ko ang cleansing platform ng administration na ito that is paving way for the next administration.

  • GaggerAlert

    Congrats to the Filipino people! 

    While all of us are breaking our backs for a day’s labor and paying our taxes, we don’t get any recognition. Its all the politicians (especially you Pnoy) who’s taking all the credit.

    Come on people, give yourselves a pat on the back for a job well done while our so-called president just sits his lazy *ss and wait for something good to happen and all credit goes to him.

    He’s the worst economist. He’s just lucky that the economy started booming when he came in. 

    Unless he makes something on his own, all of this is just him riding the waves which started gaining momentum before he even set foot in malacanang.

    • http://pulse.yahoo.com/_JEMNLLYAP5EA7SM3A6QUOGV62Q Chris

      hahahha… trying hard.

    • MDLANHAM

       You are still clueless. Do your math! Do you know that one out of ten posters here hate the accomplishment of this present government under PNOY. That one is you, b-pols ka talaga.

      • GaggerAlert

        Do you even know to count if I may ask. There are several posters here who are doubtful. Not only me. So go back to preschool and study your 123’s and ABC’s. Ok? :) hehehehe…

      • GaggerAlert

        AWWW shoot! Wrong forum.. Full of noytards. I’m sorry, my mistake! :)

    • 12JEM

       Kanirexus maximus….

  • http://pulse.yahoo.com/_AVRSWQTCWADVWA62MXAGV6MB6Y Chris

    What makes this interesting is that we are achieving this feat when most countries in this world are going down.The momentum have just started this year 2012 as gear 2.2013 will be in gear 3.So in 2016 it will be in gear 6.The era of high growth rate of 8~9% or even more.Lets keep our finger crossed.

    • http://profile.yahoo.com/HUBZQT7WKGEBIJNEV6VVWRCZ34 Mr

      Eventually, the steady 7-9% growth over the coming years will start trickling down to the man on the street. Notwithstanding the bungling politicians, natural calamities and persistent cynicism. We just have to be patient, and continue to work diligently. 

      It’s for our kids and the next generation that we’re planting these seeds of progress.

  • kulittwit

    This is it!! Go PNoy!!

  • DGuardian

    Iba talaga kapag hindi magnanakaw ang Presidente ng Pilipinas.  Maraming foreign investors ang gustong dito magnegosyo. Sana ang susunod na mahahalal sa 2016 na presidente na papalit sa kanya ay tulad din niyang hindi magnanakaw. Iba talaga kapag ang mga magulang ay hindi magnanakaw at siyang tinutularang role models ng mga anak. Kahanga-hanga ang pamilya nila Cory at Ninoy.

    • GaggerAlert

      Something tells me that you’re not really well versed on what’s happening with him financially.

      Didn’t you know his assets in 2012 increased by 10M? because of his so-called “inheritance”. Come on. You would be an effing duffus to believe that cr@@@@@p.a

      • http://pulse.yahoo.com/_JEMNLLYAP5EA7SM3A6QUOGV62Q Chris

        hannggang conspiracy theories nlng yng iba.. 

      • GaggerAlert

        Weehh.. try to google. Inquirer din nag release ng news article na yun. Its not that hard to look namn diba?

        Problem sa tao, nga namn. Nandyan na yung google. Sobrang tamad pang maghanap. Goes to show bakit ubod ng chismoso mga pinoy in general. No one has the initiative to verify. :)

      • nardong_tutpik

        10M lang kinurakot nya in his 2 years as president and power over 2 Trillion government spending?  LOL pathetic accusation.  Pork barrel pa lang ng presidente ilang bilyon na.  Maniniwala lang akong kurakot si Pnoy pag nasa hundreds of millions na substantiated corruption scandal sya involved.

      • GaggerAlert

        Ok.. then name me one president of our country who was convicted without reasonable doubt of being corrupt. Come on, tell me one.

        That’s right, its all rumors. Nothing has been ever proved in court.

      • nardong_tutpik

        So how about Erap being convicted by the Sandiganbayan of plunder?

        I said substantiated and not convicted or proven in court.  Example naniniwala akong corrupt si GMA kahit hindi sya convicted.  Same with Marcos, Erap (though he got convicted), etc etc…

        Naka google ka lang ng 10M increase in wealth ni PNoy gumawa ka na ng chismis. Hindi ba credible na nag increase ng value ang 1% ownership nya sa Hacienda Luisita c/o his mom’s share? Palagay mo wala sa billions ang value ng libo libong hectarya ng lupa ng ninuno nya?

      • GaggerAlert

        Now I ask you this. If he has already had this case, should he have been banned from running office again? Why wasn’t he banned? Was the case strong enough to convict him? If I remeber correctly, when nothing fell into place, people power happened, no case was closed.

        Every politician is corrupt, but that’s only a perception. Its another thing to prove it in court with evidences. So, saying someone is corrupt is ok, but telling someone is corrupt because its a fact, may have its technicalities. No case, no conviction. That’s it.

      • GaggerAlert

        Correction a.. Totoo yung increase ng kanyang net. So, anu yung chismis dyan?

        On a sidenote, should he be given that inheritance given those hectares of land whose ownership are still in question. Come on. DOn’t make it too easy for me. :)

  • dikoy321

    The explanation is SIMPLE:  P-Noy is not Corrupt!

    GMA and her ilk are all CORRUPT !

    Expose the CROOKS and the CORRUPT in the Philippines, private individuals or public officials !

    Forward Philippines !!!

  • dikoy321

    Congrats P-Noy!

    P-Noy was only a student of GMA, who holds a Doctorate in Economics (kuno!), if not a Masters Degree!  Hahaha  Natalo ng estudyante ang Propesor nya, Aba, MAGALING si P-Noy!

    Forward Philippines !!!

  • grafixtube

    Sign of the time…good times! Merry Christmas Flips…Mukhang magiging happy ang New Year natin.. Congrats PNoy!

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