I remember in the late 90s that annual office space take-up didn’t even crack 100,000 square meters in most years. Prior to the pandemic, that number topped 500,000 sq.m. Of course, this was primarily due to the growth of the IT-BPO Industry. Many cities flourished because of the demand generated by this specific industry. Many employees have moved up the socioeconomic ladder by working in this industry.
Let’s use the Eastwood City development in Quezon City as a case study. Who would have thought that Fortune 500 companies could be persuaded to leave the comforts of the Makati business district? Four elements made it happen for Eastwood: 1. The cost of real estate 2. Fiscal incentives 3. Access to labor and 4. Market timing.
Suddenly, corporate social responsibility with a focus on the environment is in play. Some say sustainability is a long game that costs money, and I agree. But it does not have to be that way, if we can bring these real estate projects to greenfield and developing cities, and not just focus on Metro Manila and other popular provinces.