ILOILO City – “The Iloilo office market is ripe for growth,” said real estate consulting firm Colliers International in its second quarter provincial property report.
While Manila is seeing a gradual slowdown in investments from business process outsourcing (BPO) firms, Iloilo City remains poised for further growth and development in the sector – as more companies look to the provinces for office space and manpower, reflecting the industry’s move to the less congested countryside.
“The Iloilo office market has the foundations in place to cater to the growing BPO industry outside of Metro Manila,” said Dinbo Macaranas, senior research manager of Colliers International, in the bi-annual report. “The government thrust to promote the province as a major investment hub in the Visayas, coupled with the planned projects of the country’s major developers, provides a positive outlook for Iloilo.”
The current total office stock in Iloilo is at 72,800 square meters, about 80 percent of which is located in Mandurriao. The balance is spread across Iloilo City proper, Molo, La Paz and Jaro. In 2018, around 46,100 square meters of office supply are expected to come into play. Majority of new supply will be coming from Mandurriao, with Megaworld, SM Prime, and Ayala Land as major contributors.
Megaworld, Ayala Land, SM Prime, and Robinsons Land have all entered the Iloilo office market beginning 2007 and focused developments in Mandurriao. Companies such as iQor, WNS, Nearsol, and Yazaki-Philippine EDS Technoserve took-up spaces last year and started operations this year.
“Colliers believes that demand for BPO space will likely continue given the aggressive promotion being undertaken by the local government as it aims to become a premier SMART (Service, Manufacturing, Agri-business, Arts and culture, Research and technology and Tourism) city of excellence,” added the research report.
The international consulting firm also cited the visit of various businessmen from Hainan and Hong Kong to the province last April and May, where they scouted for potential locations to invest in property development or the BPO industry.
“Thus, the provincial city has remained in the radar of foreign BPO investors. The number of educational institutions has also made Iloilo a center for learning in the Visayas region and consequently a viable area for companies to locate in,” Colliers said.
According to a report by the Philippine Information Agency Region 6, currently there are 47 BPO companies operating in Iloilo City, employing some 21,500 fulltime employees./PN
