Manila, Philippines—Ortigas & Co. is looking to build more BPO and KPO spaces in the medium to long-term in view of continuing rise in demand.
“The recent rise in the number of business and knowledge process outsourcing companies (BPO / KPO) and technology firms has led us to rethink our land banking strategy to accommodate these pioneers with more office spaces,” said Ortigas & Co. Chief Operating Officer Thomas F. Mirasol.
According to a study by property consultancy firm Leechiu Property Consultants (LPC), 66% of office locators come from the BPO / KPO industry. This sizable number gives developers like Ortigas & Co. more impetus to allot space conducive for such companies and with 1.3 million expected full time employees from the BPO / KPO this year, (80% of which is expected to come from NCR), office space has never been more in demand.
BPOs and KPOs
The company behind top retail and residential developments, such as Capitol Commons, Greenhills Shopping Center, Frontera Verde, Circulo Verde, and the Greenmeadows and Valle Verde subdivisions, is now seeing a shift towards office spaces. Proof is the presence of KPO and tech movers in Estancia, the high-end mixed-use space in Capitol Commons.
Among those already holding forts in Estancia are news website Rappler, Denmark-based conglomerate Maersk Group, and the US-based e-payment services leader VeriFone. The Maersk Group for example, occupies almost half of Estancia’s 19,000 square meters of office space, with 8,900 square meters under its name.
“What the current trend shows us is that the BPO and KPO industries will continue to thrive in the country. With these companies’ needs to establish operations in Manila, Ortigas & Co. has made its land bank ready to house these innovative firms,” added Mirasol.
Apart from Estancia, Ortigas & Co.’s Silver City in Frontera Verde also serves as headquarters of tech firm Anthem Solutions, which occupies 20,600 square meters of office space. Silver City is a three-hectare property, which opened its first building in 2009. It is the developer’s first foray in office construction and leasing.
Ortigas & Co. also makes itself part of the co-working space trend with the addition of Launchgarage in the tenant portfolio of Circulo Verde. Dubbed as an “innovation hub” following the likes of startup incubators in tech hotspots in the US, Launchgarage promotes open collaboration among bright minds to produce game-changing ideas.
“Co-working spaces are also gaining popularity these days, especially among freelancers and startups. Launchgarage opened its doors in Circulo Verde recently and we are glad to have them as part of the property’s growing community,” Mirasol shared.
LPC figures show that 2016 sees a 37% office vacancy rate in Metro Manila. With the Information Technology and Business Process Management (IT-BPM) industry projected to hit $20 billion in revenues this year along with continuous increase in demand for talent and infrastructure, the need for office spaces will be ever-present.
“Ortigas & Co. is ready to take on this challenge, whether it’s from the IT-BPM industry or other sectors. We are actively assessing our assets and finding ways on how they can be more efficient. We believe that providing various players, whether they’re from the IT-BPM industry or more independent sectors, with the space they need to build and bring their work and ideas to life gives the company and its land bank more value. It also highlights our commitment to exceptional quality and service in the property space,” Mirasol concluded.
For 85 years, Ortigas & Co. has been bringing to life some of the nation’s most loved and most iconic places such as Frontera Verde, Capitol Commons, Greenmeadows, and Greenhills Subdivisions – and with it, creating new experiences, traditions, and aspirations. Still, it continues to build for life. For more information, visit www.ortigas.com.ph.
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