Demand for Philippines office space breaks record
By Daxim L. Lucas in Manila/Philippine Daily Inquirer | Asia News Network – 12 hours ago
Manila (Philippine Daily Inquirer/ANN) - 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 metres, and may rise further by yearend.
This level is at least 18 per cent 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 per cent 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.
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