Multinationals seek new office bldgs in BGC

MANILA, Philippines - Indicating the emergence of Bonifacio Global City as the most preferred office location, office take up rate in the former military camp overtook that of the country’s established financial capital Makati in 2009, according to a recent study of the office market by Jones Lang LaSalle Leechiu.

Jones Lang LaSalle is a global services firm specializing in real estate and operating in over 70 countries. In the Philippines it operates as Jones Lang LaSalle Leechiu.

The March 2010 study indicated that an approximate total of 293,000 sqm of office space was taken up last year primarily in two major locations: Bonifacio Global City and Makati, in that order. “While the difference in take up between the two districts was not great last year, the gap is highly likely to widen in coming years, according to Sheila Lobien, Jones Lang LaSalle Leechiu associate director.

She notes that a number of local and multinational companies have relocated to Bonifacio Global City (BGC) because it is able to offer a great business environment at competitive terms. She notes further that the tenant mix in new BGC buildings now being snapped up by tenants both BPOs and corporate tenants. These new buildings include Picadilly Star and Fort Legend.

Firms doing outsourced work deliberately seek new buildings that meet their needs. Older buildings, for instance, have centralized air-conditioning, says Lobien. But if you are the only floor operating from 9 p.m. to 6 a.m., you want to pay only for the air-conditioning you need on your floors – and no more. Thus buildings with variable refrigerant flow system like that of Picadilly Star are preferred.

An Asia-based multinational financial institution, a firm specializing in fast moving consumer goods and a local bank are among the corporations that have led the migration of some of their units to Bonifacio Global City. Lobien notes that these companies are looking for more efficient spaces with ample elevator service and redundancy or back-up service from telecom providers. They also seek transport services for their workers, a need that has prompted the developers of Bonifacio Global City to provide bus service from 6 a.m. up to 2 a.m. daily – with buses passing through every 15 minutes during peak hours and every 30 minutes during off-peak hours.

She notes nevertheless that rents in Bonifacio Global City are not likely to always be lower than that of Makati’s prime spaces. Rentals in Bonifacio Global City have already risen by 15 per cent and may overtake rates offered by Makati’s Grade A buildings.