High Demand for Office Space Inside Clark Push Prices up Again in 2018

A key factor driving the growth in demand for office spaces in Clark is the business process outsourcing (BPO) boom the freeport has been experiencing. Clark has become the second biggest BPO hub in the Philippines as large multinational firms continue to amplify their presence in the country. Metro Manila is just too overcrowded and lacks available space to handle the current influx of foreign companies that are looking to setup operations.

“Clark is a gold mine for investors. We see a vote of confidence on Clark as an option out of Manila as it comes on the radar screen. And with congestion on Edsa, we see a rise in new central business districts (CBDs). The rapid urbanization, overseas Filipino remittances and the growing BPO sector are the main drivers for the Philippine real-estate sector,” Says Rick Santos, CEO of Santos Knight Frank.

Development of infrastructural facilities and the launch of Clark International Airport (CRK) have improved connectivity and ease of transport which has led the way for increasing investment opportunities in the area. There is also stable and consistent power lines, accessibility to many transportation options, and a huge workforce of qualified Filipinos.

In return for the high demand comes the increase in pricing for office space and buildings. Turnkey seat arrangements or seat leasing come at a price of about $200-$400 per month per seat which is double what companies were paying just 5 years ago.

Companies looking to take full advantage of the tax cuts and investment incentives of being located in a freeport zone will need to lease or build their own infrastructure. A bare shell building or open warehouse will run about $8 per square meter in 2018 compared to just 4$ per square meter in 2010. The most popular option for outsourcing companies is to lease a partially fit building and then make interior designs to their likings. This option has a going rate of $12-$17 per square meter in 2018 depending on which business park the property is located in.

Top 5 Business Parks on Clark

  1. PHILEXCEL BUSINESS PARK – As the largest business park in Clark Freeport, Philexcel is uniquely positioned to provide exemplary office and industrial space to suit the needs of a range of businesses. Recent expansion includes retail opportunities and residential buildings to support our growing business community.
  2. BERTHAPHIL PARK ONE (INDUSTIAL) – The first business park in the Berthaphil lineup. This secure and modern leasing park can accommodate Industrial, warehousing and manufacturing companies large and small.
  3. BERTHAPHIL PARK TWO (BUSINESS/OFFICE) – A professional business and office park. Many amenities, great building infrastructure and modern building designs abound with layouts for call-centers, computer design firms and other professional endeavors.
  4. BERTHAPHIL PARK THREE (I.T. TECHNOLOGY/INTEGRATED) – Berthaphil has created an integrated-community for I.T. and other high-tech industries reliant on dependable and fast telecommunication services. This project incorporates a promenade and housing units for a work/live/shop environment.
  5. CLARK GLOBAL CITY – A 177-hectare business center currently being constructed on Clark that will surpass Bonifacio Global City standards. The business center will be divided into four zones the first being, Aeropark as the home to BPO companies and IT centers. Next there is the Town Center that will be where the retail centers are located. The Business Park will be the priority location for some of the biggest companies scrambling for prime spots in the master planned property. Lastly the Logistics Park will house several warehousing and distribution facilities.

Clark is not only one of the largest BPO hubs in the world but it is also a hub for hospitality and leisure. There are a ton of things to do for entertainment from water parks to adventure off-roading which keeps Clark the go to spot for the BPO industry.