Multinational firms drive FILRT lease growth

Multinational firms looking for new offices in Metro Manila are expected to drive growth in Filinvest REIT Corp.’s (FILRT) new leases this year as the office space industry moves to fill in the gaps left behind by Philippine offshore gaming operators (Pogos).

In a stock exchange filing on Wednesday, FILRT said the 13.3-percent jump in its new leases in the first nine months of 2024 was driven by multinational companies that established presence at Northgate Cyberzone in Alabang, Muntinlupa City.

“The proactive efforts of FILRT’s management to swiftly address pretermination challenges have spurred the arrival of new tenants, reinforcing the area’s status as a prime business hub in the south,” the Gotianun-led office landlord said in its disclosure.

“This strategic approach continues to attract global enterprises seeking to expand within a master-planned, strategically located environment,” it added.

Global professional services firm Genpact Services Llc is among FILRT’s largest clients, with around 24,400 square meters (sq m) of leased space in Northgate Cyberzone.

Nasdaq-listed EXLService Holdings Inc. likewise expanded its leased space by 1,750 sq m last year.

Meanwhile, FILRT onboarded Singapore-based business process outsourcing firm Gear Inc., which opened in 2024 its first permanent office in the Philippines, occupying 1,993.1 sq m.

Northgate Cyberzone consists of 16 office buildings that stand close to residential communities, schools and commercial hubs.

FILRT’s lease growth comes amid a sustained office space vacancy in the National Capital Region following the exit of Pogos.

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Real estate investment management firm Leechiu Property Consultants found that in the first 11 months of 2024, demand for office space rose up by 4 percent to 1.1 million sq m, driven by traditional offices.

The Bay Area and Makati City remained the demand drivers, with 46 percent of the total or 411,000 sq m coming from these areas alone.

However, Mikko Barranda, Leechiu director for commercial leasing, said the country’s office vacancy will likely stay at 18 percent next year as the industry struggles to repopulate spaces that Pogos had vacated.

Still, Barranda said government agencies and information technology and business process management companies could help stabilize supply and demand.