The business process outsourcing industry was not only expected to generate more jobs for Filipinos but would also help fill up available office spaces, both in prime business locations and in “next-wave” cities. According to data from real estate services firm CB Richard Ellis Philippines, the vacancy rate for the Makati Prime/Grade A Office category had surged to as high as 7.5 percent from 1.5 percent just more than a year ago. By end-2009, the firm said this number could breach the 10-percent mark, due to quality and pricing pressures.

“For 2009, the challenge for the office sector is the immediate absorption of the spill-over space from 2008, estimated at around 145,000 square meters (completed and ready for occupancy),” CBRE chair Rick Santos said in a statement. “With BPO as the main driver for office take-up, new office absorption is expected to be flat at around 250,000 square meters, with provincial urban centers like Cebu, Davao, Clark, and Baguio taking their share from Metro Manila,” he added. (more…)