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Township Projects to Boost Philippine Outsourcing Industry

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  • Posted: February 17, 2015

More than 20 new real estate developments in Metro Manila and areas outside the capital are under development to boost the Philippine outsourcing industry as well as the retail sector.  The outsourcing industry in the Philippines is currently the number one driver of demand for office space, responsible for 67 percent of transactions in 2014.  According to JLL associate director Lylah Fronda-Ledonio, the figure will increase to 80 percent by the end of the year. 

JLL head for research, consulting and valuation Claro Cordero added that the new township projects will further drive the Philippine BPO industry boom by providing real estate options and office space to companies looking to expand or establish operations in areas close to labor hubs.

Majority of the real estate developments are located in urban areas like Uptown Bonifacio Global City, Vertis North, McKinley West, ARCA South, South Park District, La Fuerza, and Woodside City.  The rest are in Laguna, Pampanga, Cebu, and Davao.  Besides Bonifacio Global City in Taguig, Ortigas and Makati, Quezon City remains a top BPO destination for the outsourcing industry in the Philippines due to its large labor pool and good facilities.

Ledonio said the locations provide high-quality but affordable talent and cost efficient rental options, adding that many big and new developers are interested in areas outside Metro Manila to attract companies in the Philippine BPO industry.  JLL reported that 75 percent of IT-BPO jobs are in the National Capital Region, while 6 percent are mostly in Central Visayas. 

Growth in Retail and Convenience Stores

The Philippine outsourcing industry boom has been accompanied by the rising number of convenience stores like 7-Eleven, which was expected to open 401 new stores in 2014.  JLL said the growth of the convenience store market is in correlation with the round-the-clock type of operations that characterize the business process outsourcing sector.  Besides 7-Eleven, Mini Stop and Family Mart, Indonesia's Alfamart and Japan's Lawson are also expected to open new stores nationwide.

Meanwhile, expectations for the retail industry also remain hopeful.  JLL head for tenant representation Lizanne Tan said Metro Manila currently has 7.6 million of the total 14.2 million square meters of retail space in the Philippines, while 6.6 million are outside the capital.  Retail space growth will continue to increase in the provinces until 2015.