The excess supply of office space in Metro Manila created by the global financial crisis as early as 2008 will be absorbed mostly in the first half of 2010 as the business process outsourcing (BPO) sector continues to grow.

Lindsay Orr, chief operating officer of global property consultancy firm Jones Lang LaSalle Leechiu (JLLL), is confident that a significant portion of the additional 315,221 sqm. of office space coming on-stream from January to June this year will be absorbed by BPOs and remain bullish about doing business in the Philippines.

This is in addition to the 575,446-sqm. of office space that was constructed in 2009. “This will cause office prices to bottom then start moving up perhaps by the end of the second quarter of 2010,” he noted.

Orr further observed that more BPOs are moving out of the Makati central business district (CBD) and into emerging business districts like Bonifacio Global City and even office developments in Quezon City and Makati’s Pasong Tamo, driven by the highly competitive nature of the BPO segment. The strategic location of Bonifacio Global City accessible to the rich labor pools of Quezon City, Pasig and Paranaque has made it a preferred BPO location.

Sheila Lobien, JLLL associate director, said that office towers like the 24,653 sqm. Fort Legend launched in February last year is now 100 per cent occupied and includes BPOs and traditional multinational companies as occupants.

“Our clients realize that giving employees easy access to and from work helps in employee retention,” she explained. The 29-story PEZA-accredited building with a penthouse is near St. Luke’s Medical Center and the proposed Shangri-La Hotel property.

Orr disclosed that the business community has welcomed Bonifacio Global City as a viable place for doing business. Real estate developers including The Net Group are confident of the demand for this area and will be completing its new office project, Net Lima, in the third quarter of 2011.