July 8, 2016
BPO growth propels retail sector growth outside Manila
The Philippine retail sector is poised for a solid growth on the back of a new administration and the rising consumer confidence in the country. The spread of the country’s business process outsourcing (BPO) sector beyond the capital to other population center has also fed into retail space development outside Manila. According to data from property consultancies, retail gross leasable area (GLA) in Cebu increased by 45% since 2014 as a result of its growth as a BPO center. A further 70,000 square meters of GLA is expected to be added to Cebu’s existing stocks this year. Demand for retail space is gaining momentum in the Philippines, one of three countries in Asia to post rental rate growth in Q1 of this year, according to a recent report from real estate services firm Jones Lang LaSalle (JLL).