Rental rates in the Philippines remain the lowest in Asia at $29 per square feet per year, a key factor in the continued growth of the country's business process outsourcing (BPO) sector. The Philippines' rental rates are lower than cities in India (Bangalore at $31 per square feet per year and New Delhi at $38) and popular BPO destinations across Asia (Bangkok $31, Kuala Lumpur $52, Hanoi $46, Ho Chi Minh City $56, Taipei $61, and Jakarta $73).
Destinations with the highest rental rates are Seoul at $79, Singapore at $110, Tokyo at $120, and Hong Kong at $221. CBRE Philippines director for corporate agency and brokerage John Corpus said that a lot of BPO companies are expanding, including Japanese companies that are looking to set up operations in the Philippines.
CBRE reports that the 1,340.65 square feet of office space occupied in 2014 was the highest transaction in the last six years. According to CBRE, the drop in aggregate vacancy from 3.30 percent to 2.45 percent in the first quarter of 2014 will be offset by the 400,000 square meters of space coming in within the year.