Limited new office space supply in Ortigas CBD noted

MANILA, Philippines - Because of its proximity to major residential areas in Metro Manila, the Ortigas Business District continues to be one of the most attractive locations to both employers and employees. Compared to Makati and the emerging Bonifacio Global City, nevertheless, the supply of new office buildings in the second largest business district of the Philippines has been limited in the past year.  Supply will continue to trickle in up to 2013, according to a Metro Manila Office Market study by Jones Lang LaSalle Leechiu (JLLL).

For this reason, BPOs and other firms seeking to locate in the business district strategically bordering Quezon City, Pasig and Mandaluyong are on the lookout for new space coming up in Ortigas, according to Sheila Lobien, director of JLLL. Months before iSquare’sscheduled completion, a number of companies have already been showing great interest in the 17-storey building on F. Ortigas Jr. Avenue.

Overall, there is a temporary supply deficit of new office space across all business districts, according to the JLLL study. This explains why rents have been rising by 15 to 20 percent in   Bonifacio Global City and Ortigas since late last year and are likely to continue to escalate. In Ortigas, the dearth of new space is even more pronounced. Lobien relates that after iSquare becomes available, no new buildings will be coming on-stream in Ortigas until 2013.

“The supply of new office space in Ortigas simply has not matched the rapid pace of construction of new buildings in the Bonifacio area and Makati,” explains Lobien. “This however does not make the place less attractive. In fact, the Ortigas district is highly attractive to BPOs seeking an area with three power grids which ensures the availability of electricity even during emergencies.”

She noted that despite the mushrooming of new business districts in Metro Manila in areas like Cubao, Bay City, Manila, Marikina and Newport City, Metro Manila’s supply of office space remains concentrated in Makati, where there is close to 1 million square meters, and Ortigas, where there is close to 800,000 sqm. Bonifacio Global City follows with around 400,000 sqm.

Lobien notes: “In time, Ortigas’ supply should catch up but for now, iSquare’s 24,200 sqm. of office space is a welcome addition to the current stock.” Each floor in the building has a floor plate of 1,400 sqm. making it ideal for BPOs. Moreover, the building has a food hall that will cater to employees’ needs.

Companies that prioritize redundancy are likely to shortlist the Ortigas area among its top location choices, says Lobien. In addition to its superior transportation facilities like the MRT that provide easy access to Marikina and Quezon City, the area also has a number of malls and commercial centers. Ortigas is accessible to most residential areas of Metro Manila which makes it as attractive as ever. 

Supply is likely to catch up with strong demand but only after a number of years, according to Lobien. For this reason, iSquare and the few buildings coming up in the area are likely to be taken up quickly.