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BPO sector remains a top investment driver in PHL – CBRE


The business process outsourcing (BPO) sector remains a top driver for investment in the country, according to a large commercial real estate firm.

CB Richard Ellis Philippines, Inc. (CBRE) corporate agency and brokerage director John Corpus, in a briefing in Makati City Tuesday, said the Philippines has overtaken India in voice call centers, including for Western banks and information technology firms.

Corpus said for every one BPO job, an additional 2.5 jobs are created in construction, administration, and services.

He also noted that the offshoring and outsourcing sector continues to be the main driver of the office market.

Vacancy rates in key business districts dropped in the fourth quarter of 2014.

"Overall vacancy rates for Prime and Grade A buildings in Metro Manila slipped from 2.53 to 2.13 percent quarter-on-quarter," according to CBRE.

CBRE Philippines chairman and CEO Rick Santos said investors are willing to pay for the quality and value even with the increase in rental rates across all business districts.

The aggregate office occupancy rate for the five business districts—Makati, Fort Bonifacio, Alabang, Quezon City, and Ortigas—is pegged at 97.87 percent in the last quarter of 2014.

Meanwhile, CBRE corporate agency and brokerage director Morgan McGilvray, in the same briefing, said real estate developers continue to diversify into the retail segment to accommodate consumer demand for shopping convenience.

"The advent of retail-tainment has come, offering Filipino shoppers the overall retail experience incorporating entertainment centers into shopping malls," McGilvray said.

He noted that the estimated new supply in 2015 of the retail sector is 233,000 square meters in Quezon City, Makati City, Bay Area, Pasig City, Taguig, and Alabang. — BM, GMA News

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