BPO demand should prevent office property glut

Demand from the business process outsourcing (BPO) industry will continue to propel the growth of the office property sector in the Philippines, according to real estate analyst Jones Lang Lasalle Philippines. The firm said there is no threat of an office property glut in the Philippines despite the large amount of office stock set to come on stream in the next two years because demand from the BPO sector will continue. According to Jones Lang Lasalle Philippines National Director Sheila Lobien, there is still not over-capacity in the office market because the supply that enters is immediately absorbed. She added that 48% of new office stock set to come online this year has already been pre-leased.