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From local companies to business process outsourcing (BPO) firms, Bonifacio Global City is the top choice of office space location because of its high-grade office space supply as well as convenience and accessibility.
According to KMC MAG Group's Midyear Real Estate Report, Bonifacio Global City is the most active business district, generating over 50% of the growth in the property market. This increase is driven by the bullish office markets, especially BPO companies who opt to locate in the buildings in the area.
Factors that Drive Demand for Fort Bonifacio/BGC Office Space:
- Buildings have the backup power and redundancy that BPOs need: Most BPO companies need to have 24/7 operations and having no electricity and active systems in just a few hours can cost the firm thousands of dollars.
- Convenient location that's close to other major CBDs: Bonifacio Global City is close to Makati (via EDSA and Ayala Ave) and Ortigas (via C-5).
- Slightly lower rental rates compared to Makati: The average asking rental rates for Grade A buildings is at Php 708/sqm to Php 1,000/sqm while seats in serviced offices is at Php 18,500/seat to Php 20,000/seat. In Makati, while Makati rates are at Php1,027/sqm to Php1,200/sqm.
- High vacancy rate: BGC has more available space for rent or lease and sale compared to Makati since most buildings are still in development. Stocks, however, are quickly declining due to high demand in the area.
- Newer stocks: Currently, BGC has a stock of 650,000 sqms with 140,000 sqms of buildings in the pipeline. Most of these stocks are new buildings completed in the last 5 years. More buildings are expected to increase available stock such as SM Aura Office Tower, RCBC Savings Bank Corporate Center, Ecotower, and W Fifth Avenue which will be turned over by the end of 2013.