IT-BPM firms remain key driver of office demand in Philippines, says JLL
IT-BPM companies continue to account for most office requirements in the Philippines, while non-BPO occupiers such as government offices and local banks are relocating to newer buildings. JLL Philippines notes that lower rents make such moves more attractive, and that improving real estate transpare
INFORMATION technology-business process management (IT-BPM) companies continue to account for most office requirements in the Philippines, while some non-BPO occupiers have also relocated to newer buildings, according to Jones Lang LaSalle (JLL).
“Most of the office requirements annually are really driven by IT-BPO firms. In the Philippines, over the last couple of years, there are also some clients that are not IT-BPO firms [like] government offices, front offices, or local banks, that have made the move to try and relocate to new offices,” JLL Philippines Country Head Joey Radovan said in an interview with BusinessWorld on 18 Sept.
Mr Radovan said lower rents could make relocations more attractive for companies with the capital to undertake large leasing transactions. “If the market is down, and then you have capital to actually do a leasing deal, a huge leasing deal, this is the time to actually make that move because you’ll get lower rents,” he said.
He said occupiers have historically gravitated toward newer premium buildings when such spaces are available, particularly when rents are lower. “Over the last 30 years that I’ve worked in this market, clients normally gravitate towards newer premium buildings when it’s available. In a down market like this, if there’s premium office space, the more tenants will gravitate towards relocating because it’s the best time to relocate when the rents are down,” he said.
The comments come as JLL and LaSalle’s 2026 Global Real Estate Transparency Index (GRETI) showed improving real estate transparency across several Asia-Pacific markets. India, Vietnam, South Korea, Australia, and Thailand accounted for half of the 10 most improved markets globally, according to the index. JLL said improving data availability in the region could support site-selection and lease-structuring decisions by occupiers.
The biennial index covers 88 countries and territories and 146 city markets across 260 factors, including market fundamentals, regulation, transaction processes, sustainability, and performance measurement. Globally, transaction volumes in the 13 markets classified by JLL as “Highly Transparent” increased 64 per cent over the past two years, according to the index. These markets accounted for 56 per cent of global income-producing real estate and more than 80 per cent of direct investment.
Mr Radovan also cited lower labour and real estate costs in the Philippines as factors considered by companies locating operations in the country. “Our labour cost is much lower. Our real estate is much lower,” he said. For BPO companies, office space may also accommodate more employees than the number of available workstations through multiple shifts, according to Mr Radovan. “As much as three times depending on shifts, especially for BPO companies, 1,000 seats can have 3,000 employees if they have three shifts,” he said.