BUSINESS process outsourcing (BPO) companies may find seven provinces conducive for their operations, according to a real estate consultancy, as the industry’s expansion outpaces the supply of office spaces in Metro Manila.
Leechiu Property Consultants (LPC) is recommending Cagayan, Pangasinan, Bulacan, Batangas, Aklan, Leyte and Bohol as locations for BPO operations.
“We’re confident that there’s enough labor in these locations to support small and mid-sized BPO operations,” LPC Chief Executive Officer David Leechiu said when the consultancy launched its new office at Makati Shangri-La Retail Arcade on Wednesday. Mr. Leechiu expects BPO companies to consider entering the following cities: Tuguegarao in Cagayan; Dagupan in Pangasinan; Malolos and Meycauayan in Bulacan; Batangas City; Kalibo in Aklan; Tacloban in Leyte and Tagbiliran in Bohol.
“Maybe not thousands and thousands but certainly these locations have room for one to two locators,” he noted.
LPC is encouraging more BPO companies to locate in Taytay, Binangonan, Antipolo and Cainta in Rizal; Calamba, Biñan and Sta. Rosa in Laguna; Imus, Dasmariñas, Rosario and Bacoor in Cavite; and Cagayan de Oro in Misamis Oriental.
“Sometimes they’re not just aware. Sometimes many clients find it difficult to go to but you know recently so many flights have been made available, so many new roads so what they thought was two-hour or three-hour journey siguro kalahati na lang ’yun ngayon (maybe that’s now just half),” Mr. Leechiu said.
LPC expects demand for office spaces outside the National Capital Region (NCR) to reach 1.95 million square meters (sq.m.) over the next six years, should the number of full-time employees in the provinces double to 780,000.
The supply currently stands at 1.31 million sq.m., with Cebu accounting for more than a third or 476,000 sq.m. and the region comprising Cavite, Laguna, Batangas, Rizal and Quezon for about a fifth or 250,500 sq.m.
“Of all these areas, I am most excited for Rizal province, which is really part of greater Manila, because the population there is roughly two or three million people and they have no choice but to go to Metro Manila to work,” Mr. Leechiu said.
The BPO industry is what largely drives the demand for office spaces. At present, it takes around 90% of office spaces in cities and provinces outside Metro Manila.
A strong tourism play supposedly attracts BPO companies to locate in the recommended provincial locations, aside from healthy labor pool, local government support, fiber optic connectivity and accessibility. Also, developing quality hotels and malls would make the provincial locations more conducive for BPO operations.
“Ideally, you build them a little ahead of the BPOs. They need to be existing before the BPOs could go there because those things need to be serviced,” Mr. Leechiu noted.
More BPO companies are increasingly considering setting up operations in the provinces, as available office spaces within Metro Manila continues to shrink.
LPC projects a 25% increase in demand to 721,000 sq.m. this year from the 577,000 sq.m. seen in 2015. Companies prefer to locate in Bonifacio Global City and expand in Quezon City.
Vacancy rate across Metro Manila is currently at an all-time low of 4%, while 361,000 sq.m. have already been pre-committed for next year.
Year to date, BPO companies account for 63% of the 600,000 sq.m. of the existing office space in NCR.
Current supply in the region stands at 8.6 million sq.m. For the next six years, another 4.2 million sq.m. will become available, particularly in Makati, Pasig, Mandaluyong, Taguig, Quezon City, Alabang and Bay Area.
LPC, however, projects a bigger demand for 4.6 million sq.m. on the assumption the number of full-time employees in Metro Manila will double to 1.82 million over the six-year period.
“In core Metro Manila, land has been exhausted, the tenants will have no choice but to go to Filinvest and the Bay. That’s why we think the Bay and Alabang will have dramatic changes for the next six, seven or eight years,” Mr. Leechiu said.
“By 2018, many of these districts will be fully developed; there will be very little land left for new buildings to be put up. Therefore, the demand will shift from being spread throughout Metro Manila to just a handful of business districts.”
In general, the country’s property market remains among the most active across the globe, according to LPC.
The BPO industry is expected to continue expanding, with the economic slowdown in Europe prompting more companies to outsource operations in the Philippines.
Mr. Leechiu, however, cited the proposed moratorium on the conversion of agricultural lands as possible damper in the expansion of the real estate sector.
To further encourage more office developments, Mr. Leechiu said, the Philippine Economic Zone Authority (PEZA) should restore the minimum space eligible for accreditation.
“A few years ago, they increased that to 10,000 sq.m. and, in the provinces, they increased that to 5,000 sq.m. We think that it will be easier and better if PEZA reverted back to the old criteria, which is 5,000 sq.m. and 2,000 sq.m. because there are many parts of Metro Manila that remain undeveloped.”
source: Businessworld
No comments:
Post a Comment