• PROVIDING A STRATEGIC ADVANTAGE Through Technology & Processes
  • EXPERIENCE QUALITY Under One Brand with A Single Point of Control
  • UNITING LOCAL COMMERCIAL Real Estate Experience with Global Execution
  • DELIVERING RESULTS Through Collaboration & Integration

Philippines

    Philippines

    The Philippines is considered a newly industrialized country and is one of the world's “next Eleven” economies. It is expected to see rapid growth in the near future as the economy shifts from agriculture to a more manufacturing and service driven orientation. Business process outsourcing centers, in particular call centers, have recently been located in the Philippines; the Philippines is Asia-Pacific’s second-largest call center market, next to India. Regional development is also somewhat uneven, with Luzon, and Metro Manila in particular gaining most of the new economic growth at the expense of the other regions, although the government has taken steps to distribute economic growth by promoting investment in other areas of the Philippines.


    Rental rates for commercial space have started to level off as occupier demand decreases, although rental rates have remained high to date. Occupiers are being offered further incentives to entice them into new space, such as free rent, by developers as they are beginning to feel the pinch of the global economic crisis. Primary grade buildings are seeing an increase in vacancy rates, which in turn is affecting the vacancy rate in the secondary and tertiary markets; this trend will become magnified as rates decrease in the prime grade sector. The outlook is that rental rates will soon begin to fall and the market will turn ever increasingly to the occupier's favor over the near term.