By Beatriz Marie D. Cruz, reporter
Office Developer NEO Omarginal forceIce PH is expected to achieve full occupancy next year as leasing demand from business process outsourcing (BPO) companies and small and medium enterprises (SMEs) remains strong, the company said.fiSial said.
“As of now, the challenge is that we have no space for tenants because we are already 97% occupied,” said NEO's Co-Managing Director and Chief Sustainability.fiSer G.L. Garcia told businessworld on the edge of a brieFIng last week.
He said the company is in discussions with potential BPO and SME tenants and expects to have some lease agreements in place. fivalidated by fiFirst quarter of next year.
NEO owns and operates a Grade A accredited Philippine Economic Zone AuthorityfiCE buildings in Bonifacio Global City (BGC). Its portfolio comprises approximately 289,000 square meters of office space across seven towers – One/NEO, Two/NEO, Three/NEO, Four/NEO, Five/NEO, Six/NEO and Seven/NEO.
Despite high vacancy levels in the broader Metro Manila office market, Ms. Garcia said NEO is seeing steady demand for space, especially from companies seeking high-quality and sustainable office developments.
He said the company's certifications from local and international green building and sustainability organizations have helped it attract tenants amid stiff competition.
“Although there is a challenge in the real estate industry right now in terms of filling office space, we are fortunate,” Ms. Garcia said.
According to data from property consultancy firm Leechiu Property Consultants (LPC), BGC remains the only major office district in Metro Manila with a single-digit vacancy rate at about 9%.
“Fortunately for NEO, this has not been a major issue as we are increasingly becoming a preferred choice of tenants, especially among regional companies,” Ms. Garcia said.
All NEO towers have multiple sustainability certifications, including Excellence in Design for Better Efficiency from the International Finance Corporation. Certification, International WELL Health-Safety Rating, 5-Star Building for Ecologically Responsive Design Excellence, and Advancing Net Zero Philippines Certification.
NEO Group Chief Executive Officer Raymond D. Rufino said the company has long planned to expand outside BGC, but market conditions have made it cautious.
“There's a lot of supply in the market, and against that backdrop, it's hard to be too aggressive,” he said at the same briefing.
Metro Manila currently has approximately 2.7 million square meters. Number of office space available based on LPC data.
Ms. Garcia previously reported businessworld NEO plans to focus on reducing indirect emissions and waste in its buildings over the next year. The company recently partnered with HMR Envirocycle Philippines, Inc. to allow tenants to drop off old electronic equipment for recycling. Has partnered with.
He said the electronic waste will be processed into materials like cement, which NEO plans to use in future construction activities.
However, Mr. Rufino said traffic congestion and limited public transportation options at BGC remain challenges to tenant productivity and employee well-being.
“You can build a nice building and provide all these amenities, but the number one enemy of productivity in the office is really our transportation problem,” he said.
