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Bonifacio Global City (BGC) in Taguig may very well be the next financial district of the country. Over the past few years, the former army and military camp has seen the rise of green buildings and upscale business towers. Business in the area is booming, and there seems to be no sign of slowing down as more and more local businesses, BPO companies, multinational firms, and key institutions have chosen this business district in Taguig as their prime headquarters and main corporate address.
Rising occupancy rate in BGC office spaces
Besides Ortigas and Makati, BGC has been gaining traction steadily in the real estate trading market and has been attracting a lot of attention as a prime business location. The average occupancy rate for office spaces is expected to surge at 18% per year, and the growth is likely to be sustained in the coming years, according to property analysts and other investment experts.
With its strategic location in the metro, wide-ranging workplace amenities, top-of-its-class building facilities, and the whole greener work and lifestyle environment, BGC is on its way to becoming the top BPO location and most active business center in Metro Manila. Aside from leading BPO companies, multinational corporations, IT startups, leading enterprises, and, and foreign investors have already established their corporate offices here. The satellite city will also be the new home of the Philippine Stock Exchange in 2016, which will likely spur the transfer of many other offices in the area.
A series of developments has capitalized on the thriving business environment. Buildings have been designed to meet the growing needs of large corporate offices and expanding BPO companies in the country. Most of the office towers in the area feature large floor plates and ground floor retail space, aside from standard amenities. Some of the recent office real estate developments have also sought PEZA (Philippine Export Zone Authority) accreditationand have been designed, maintained, and operated as green buildings.
Things are looking up for office take-up at BGC as this will likely exceed the records. With the continued expansion of the BPO industry in the metro, there will be a high demand for office spaces till 2016. There is already a lot of committed spaces in some of the upscale buildings in the area two years before construction is completed.
Positive outlook for BGC
In a report prepared by KMC MAG Group, BGC is touted as the second most important business district in Metro Manila. The outlook remains positive as companies look for high-quality infrastructure in strategic locations. According to Michael McCullough, KMC Managing Director, office leasing is highly active. The focus will most likely be on less risky assets in several CBDs. BGC is still one of the safest places to invest in real estate.
2013 was a great year for BGC, as it marked the highest take-up rates compared to other CBDs in Metro Manila. Newly constructed buildings in the area, such as the EcoTower, W Fifth Avenue, RCBC Savings Bank Corporate Center, SM Aura Office Tower, and Globe Telecom's new headquarters, helped expand the total stock to 670,000 sqms. In 2014, the inventory is expected to grow to 810,000 sqms. with new developments and current projects on the line to meet the growing demand.