FILRT’s new leases quadruple amid Philippine BPO boom
MANILA, PHILIPPINES — Real estate developer Filinvest REIT Corp. (FILRT) announced a nearly four-fold increase in new leases in 2023, boosted by the expansion of the business process outsourcing (BPO) industry in the Philippines.
The real estate investment trust, part of Filinvest Land Inc. (FLI), reported signing 20,139 square meters (sq.m.) of new leases this year, a substantial rise from the 5,087 sq.m. recorded in 2022.
This surge in leasing activity is attributed to the expansion of two BPO companies, which alone accounted for 2,630 sq.m. of the new leases in the fourth quarter of 2023.
Additionally, traditional tenants contributed 4,512 sq. m. to the new leases, highlighting FILRT’s diversified tenant base.
The company also noted that these leases were secured at higher rates compared to current transactions in the Alabang area, indicating a strong demand for quality office spaces.
Despite facing market challenges, FILRT remains optimistic about the leasing market’s prospects in the second half of the year.
FILRT President and CEO Maricel Brion-Lirio expressed confidence in the continued improvement of leasing activities.
“The new leases that we have in 2024 have been encouraging, and we are optimistic that leasing activities will improve further in the second half of the year,” she stated.
FILRT reported a high tenant retention rate, with 31,835 sq.m., or 77% of expiring leases in 2023, being renewed. This achievement reflects the company’s strong relationship with its tenants and its ability to meet their evolving needs.
Furthermore, FILRT is actively diversifying its tenant mix by adding traditional tenants and co-working locators, aiming to enhance the resilience and attractiveness of its portfolio.
Currently, multinational BPO companies constitute 78% of FILRT’s tenant base, with the remainder comprising traditional office, co-working, hospitality, and retail tenants.
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