Philippines – Asia’s Rising Tiger

DECEMBER 10, 2019

I had a great opportunity to broaden my understanding of the Philippines capital, Manila and its CBD following the end of the Knight Frank APAC conference based in the city. Edwin Santos Samarista, Edgardo Macalintal and Nelson Del Mundo are the Santos Knight Frank executive Asset Management team and they arranged a private escorted tour with me.

Zuellig Building, Makati City Central

Manila has 5.8 million m2 of Prime and Grade A office space, making it slightly larger than the Sydney CBD however Manila’s supply is not as concentrated in the centre. There is a pipeline on 2 million m2 of office stock, however the majority of that supply is in the Ortigas business district nearby. Manila’s CBD is Makati Central where rents are US $348 pm2pa on average making this city very affordable for business. Ortigas is less than half that rate and offers business a serious advantage.

Manila reflects both poverty and prosperity. It is a newly industrialized economy which is moving from agricultural dependency to services and manufacturing.

Manila reflects both poverty and prosperity. It is a newly industrialized economy which is moving from agricultural dependency to services and manufacturing. The city workforce is generally very well dressed with many workers in corporate uniforms. This demonstrates a pride and purpose to a people who are fundamentally very happy. Even the armed Police force with automatic weapons; who in a western city would look imposing are aware of the importance of tourism and will smile. Manila is a relatively new office market but with Business Process Outsourcing (BPO) driving demand for jobs internationally office space will continue to be in high demand. Local wages of US$1 per hour are a stark contrast to $10 per hour in the United States or even much higher in Australia. I, for one, know the advantage of speaking to a Filipino call centre operator, they have a slight American accent and are very serviced focused. Every contact ends with a repeat of the next step and a request to offer further help. In this age of limited contact, it is a rare joy.

The Santos Knight Frank team showed me Makati City Central’s CBD and toured me through Philam Life Tower and other major office towers including the very impressive Zuellig building. Zuellig is no ordinary tower it was designed by New York architects, Skidmore Owings and Merrill. It is 33 storeys with an NLA of 54,555m2. Located in the heart of the Makati City Central Business District, the Zuellig Building is a prime grade office tower which offers efficient office space, convenient amenities, unobstructed views of Metro Manila, and is fully leased. The building also offers sustainable features that reduce energy and water consumption and enhance the indoor air quality. Zuellig is managed by Zuellig’s subsidiary, Bridgebury Realty Corp. Their representative, Martha Galvez manages the building and Santos Knight Frank, who proudly provide property advisory, landlord representation and property management services to this landmark tower.

Zuellig Building Foyer

“Our big goal is to help the Philippines create jobs, build a strong middle class and contribute to the growth of our country” – Santos Knight Frank

Rick Santos and his team are committed to the Philippines. They have a teamwork goal written on their office wall to remind them of their collective commitment, it says “Our big goal is to help the Philippines create jobs, build a strong middle class and contribute to the growth of our country”.

I was very impressed with what I saw, Of course, like most growth cities, Manila will inevitably succumb to the pressure of lack of infrastructure as private development expands and public financed infrastructure lags. Nonetheless with leaders like Rick Santos and his supportive executive team committed to big bold goals, you know that they will overcome small hurdles quickly as the country advances. It was great to see the Knight Frank business at the heart of the office market in the city and helping the growth of the country.