The Business Process Outsourcing (BPO) industry still accounts for the largest share of demand for office space in Metro Mania, despite US President Trump’s rhetoric that was feared to pull the market down, according to research by real estate services firm JLL.
JLL said yesterday that the BPO industry accounted for 46 percent of office space demand last year, followed by the banking and IT sectors which each had 12 percent of total leased space.
JLL CEO for Asia-Pacific Anthony Couse said in briefing yesterday that the Philippine market stood to benefit from improved bilateral relations with China, the appreciation of the US dollar against the peso, and the low attrition and labor costs in the country.
“The demand for office rental space in this part of the world remains very strong. Particularly here in Manila, the very strong growth of the BPO industry continues to grow the office space market,” he said.
He said President Trump’s “America First” policy had minimal impact on the demand of BPO firms, noting that expansions continue although new entrants were “less aggressive” in renting space.
In terms of location, nearly half or 45 percent of office rental space or in Metro Manila is found in Bonifacio Global City, followed by Makati with 21 percent, Alabang with 14 percent, Quezon City with 12 percent, and Ortigas with seven percent.
Among the cheapest office rental rates in Asia-Pacific could be found in Metro Manila, which JLL said ranked 10th lowest in rental value in the region.
The Makati Central Business District slaps the most expensive rent rates in the metropolis, an average range of P1,200 to P1,500 per square meter.