[ bworldonline.com ]
THE Clark area has become the top choice for office space
outside Metro Manila this year, as more developers build there to take
advantage of the region’s projected growth, according to Leechiu
Property Consultants (LPC).
LPC said in a real estate market report that the net office take-up
in Clark hit 111,000 square meters (sq.m.) in the year to date, making
it the second largest market for office take-up after Metro Manila. The
company noted that Clark has overtaken Cebu in terms of net take-up.
“Clark is the biggest recipient of demand after Metro Manila… this is
because of the improved investor sentiment in Clark, and the BPOs
(business process outsourcing) have developed the labor market already,
which made it easier for other developers to enter Clak,” LPC President
David Leechiu said in a press briefing in Makati yesterday.
Both BPOs and Philippine Offshore Gaming Operators are starting to
expand in Clark, alongside some government agencies like the Bases
Conversion and Development Authority, Department of Transportation, and
Philippine Amusement and Gaming Corp.
Mr. Leechiu noted particular interest in Clark Global City, a 177-hectare estate being developed by businessman Dennis A. Uy.
“Clark Global City is providing the infrastructure. Many of the BPOs
inside Clark have moved out of those facilities to go to Clark Global
City because they don’t have to provide corporate buses to transport
their employees. Number two is Clark Global City is producing
world-class office buildings,” Mr. Leechiu said.
The take-up in Clark is part of the record 1.08 million sq.m. in
total office take-up across the country recorded as of September. The
bulk of the total can be seen in Metro Manila at 799,653 sq.m. The
information technology-business process management (IT-BPM) industry
occupied a total of 301,000 sq.m in the year to date while offshore
gaming firms took up 171,000 sq.m.
The take-up in Metro Manila was seen mostly in Bonifacio Global City
with 262,000 sq.m of office space, followed by Quezon City, the
so-called Bay Area, Alabang, Ortigas, and Makati.
Mr. Leechiu noted that the lower take-up in Makati was due to lower
vacancies in the financial district. He however projected a resurgence
in Makati, as developers will soon be reconstructing old buildings in
the city.
“There are lots of old buildings that will be reconstructed. So the
20- to 40-year old buildings are going to give way to new development…
there’s going to be a massive injection of capital in Makati,” Mr.
Leechiu said.
Amid the high take-up, more projects are set to come on stream in the
next six years, adding 3.83 million sq.m. to Metro Manila’s office
supply of 10.01 million sq.m. as of end-2017. LPC said demand will
remain strong as IT-BPM and online gaming firms have pre-committed to
space from the office buildings that will be completed from 2019 to
2022.
Meanwhile, provincial areas have so far recorded a net take-up of
283,948 sq.m. Aside from Clark, demand hot spots for office space
outside the capital are Cebu, Laguna, Iloilo, Cavite, Nueva Ecija,
Davao, and Rizal.
Around 548,000 sq.m of office space is expected to be added into the
Luzon office supply, excluding Metro Manila, until 2025, while 305,000
sq.m are in the pipeline for Visayas and Mindanao, excluding Cebu. — Arra B. Francia
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