Remote work in BPOs affects office leasing decisions, says JLL
MANILA, PHILIPPINES — Leasing decisions in the country are hampered by economic headwinds and continued work-from-home arrangements of Business Process Outsourcing (BPO) companies.
During its most recent property market briefing, Lizanne Tan, Office Leasing Advisory Head of real estate firm JLL Philippines, said that hybrid work models had become a non-negotiable element in office space decision-making.
“In Manila, we’ve seen an increase [in] demand for flexible space. A lot of times, the locations that companies are looking into are closer to employees’ homes rather than in major central business districts,” Tan added.
JLL Philippines Head Of Research Janlo de los Reyes noted that excess supply left over from 2022, the 8.1% December inflation, and future interest rate hikes would put even more pressure on the property market as intense competition grows among occupiers and buyers
Office leases in Metro Manila rose 67% year-on-year to 669,000 square meters (sq.m.) in Q42022. However, the new leasing volume in the fourth quarter dropped by 32% to 150,000 sq.m.
Meanwhile, Metro Cebu’s leasing volume hit 129,000 sq.m. in 2022 due to the expansion of several IT-BPO companies in the province.
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