More BPO firms expand outside Metro Manila
Date:
June 6, 2016
BUSINESS PROCESS outsourcing (BPO) companies have started locating outside Metro Manila as the industry further expands, a development in line with the incoming administration’s goal of bringing growth to the countryside, according to a real estate advisory firm.
“BPOs in the country are seen to continue to prosper in the coming years,” CB Richard Ellis Philippines (CBRE) Philippines, Inc. Founder and Chairman Rick M. Santos told reporters on Thursday.
Mr. Santos noted that demand for alternative office districts such as Alabang, Quezon City and Bay Area has steadily increased as rental rates increase and office space supply tightens in Makati City and other primary business districts in Metro Manila.
In the Bonifacio Global City in Taguig, for instance, rental rates are projected to increase to P1,163 per square meter in 2020 from the P957 estimated for this year.
“As Metro Manila continues to be saturated, the need for new areas to be developed has become imperative in order to accommodate the growing demand in the market,” Mr. Santos said.
Investments have started to flow into areas outside Metro manila such as Laguna, Cavite, Bulacan, Pampanga, Cebu, Bacolod, Iloilo, Davao, Cagayan De Oro and Zamboanga, according to CBRE Philippines.
“The continuous improvement on infrastructure projects in the country along with the numerous pending (public-private partnership) projects, once set into motion, will greatly increase the ease of accessibility across various areas in the country,” Mr. Santos noted.
The decentralization of BPO offices from Metro Manila aligns with the incoming administration’s thrust toward developing the countryside, Mr. Santos noted.
Morgan McGilvray, CBRE director of corporate agency and brokerage, said the opening of BPO offices leads to the development of other real estate segments along the way.
Residential buildings, retail establishments and hotels would rise near or within BPO offices to cater the employees’ and executives’ needs, Mr. McGilvray said.
Source: http://goo.gl/4RXHQC
