The information-technology and business-process management (IT-BPM) and Philippine Offshore Gaming Operations (POGO) industries remain resilient despite the global economic recession. The sectors even drove the demand and ticked up the Philippine office property leasing activities during the second quarter of the year.
According to Leechiu Property Consultants (LPC) CEO David Leechiu, “The sustained growth of these sectors will allow us to bounce back from this pandemic swiftly. We need as many employers as possible to help our economy.”
Meanwhile, Ayala Land Offices, Inc. (ALO) — the office leasing and development arm of Ayala Land — said that it has recently signed with a multinational firm a large pre-commitment of office space at One Ayala Avenue, an upcoming mixed-use development in Makati.
One Ayala Avenue is located in Makati City at the corner of Ayala Avenue and EDSA. It is a prime mixed-use development with offices, retail and hotel components. With a combined gross leasable area of 74,000 square meters, the first office tower is slated for completion in 2021 while the second tower in 2022.
The said office towers are PEZA-accredited.
“BPOs are a significant job generator for the country. Hence, we remain supportive of this sector and service our clients’ needs. The continued construction of our new buildings also provides employment and creates economic activity at this time,” says Carol Mills, head of ALO and president of AREIT.
The agreement brings the total lease-out rate of the development to 67 percent and reflects the sustained need for global companies to expand in the Philippines to support multi-functional global services. The agreement to execute the long-term lease was done through the real estate services and advisory firm CBRE Philippines.
ALO registered a revenue growth of seven percent in the first half of the year from its office developments, currently with a total GLA of 1.2 million square meter and high average occupancy rates of 95 percent.
Three of its office properties are now key assets of AREIT Inc., the Philippines’ first REIT which was listed on the Philippine Stock Exchange in August. Capital raised through AREIT will be reinvested by Ayala Land in new real estate projects in the country.