BPOS:

Expert Global Solutions, Inc. – Matina IT Park

Accredited PEZA buildings:

1. Abreeza Corporate Center
2. ACI IT Business Centre
3. Ayala Business Center
4. Damosa IT Park
5. Felcris Centrale
6. Filandia IT Center
7. Luisa Avenue Square IT Building
8. Matina IT Park
9. NCCC Davao IT Center
10. Robinsons Cybergate Davao
11. SM Lanang Premier IT Center
12. The Annex - SM City Davao IT Center

PEZA Registered Office Space for Lease (200 - 1300 sqm)

180,000 PHP200m2 Building,Regions: Davao,Provinces: Davao City,ago 2 weeks

Office Spaces Available along Quimpo Boulevard, Davao City
Floor Area: 300+ sqm to 1300 sqm
PEZA Accredited with 5 high speed elevators and dual-raiser capacity for power.
With 24-hour security.
with VRF A/C Units and has 100% back-up generators with 3-day fuel supply capacity.
Ample parking spaces, anchored by a retail and commercial complex.
Maximum branding opportunities.
Highly accessible by public transportation hubs, for in and out accessibility of Davao City.
Choice from at least 3 major telco providers.
READY FOR OCCUPANCY!
For inquiries or more details:
Look for Hannah.
‘Boom’ in office leasing looms in Davao City
December 4, 2017 | 12:13 am
DAVAO CITY — Office space leasing in the city is on the rise, according to consultancy firm Property
Interactive Marketing Enterprise (PRIME) Philippines, and the demand is projected to increase in the
near-term with more government infrastructure projects lined up and the emergence of new
commercial sub-districts.
Raphil D. Saguan, PRIME Philippine associate for capital market and investment, said the “rise quadrant”
points to “incoming demand and a wide market.”
“Since office (space) is on the rise now, we can say that in a span of time, depending on the business
environment of the city it will eventually (go) in the boom stage,” Mr. Saguan told the media last week in
a briefing.

A PRIME Philippines study showed as of the third quarter, office buildings in Davao have an average take-
up rate of 88%, with business process outsourcing (BPO) firms occupying 67%, professional services with
20%, and general services/other industries for the rest.
Among the existing commercial districts in Davao City, the Poblacion area has the fastest take-up at 95%,
while the Lanang-Bajada and Matina areas have 93%.
On the average, prices for these offices are pegged at P565 per square meter in the Poblacion area,
19% higher than last year’s P475.
“We are encouraging land developers and land owners to develop their real estate at this stage (for
office space) to gain a foothold when the boom stage comes,” Mr. Saguan said.
He said the construction of several roads and a railway would allow easier access into the city and
expand business opportunities in neighboring areas.
“There are upcoming developments by the government such as the Mindanao Railway System, bypass
and coastal road projects. If we have these connectivity, and high exposure of the different areas of
Davao City, that makes the city a very easy location to do business,” he added.
Mr. Saguan also cited Davao’s ranking as the third most competitive city, for all cities and among highly
urbanized cities, in the National Competitiveness Council’s 2017 index.
“Davao City ranked third… This is the primary competitive city outside Metro Manila in terms of
resiliency, infrastructure, government,” he said, adding there is also a competitive labor force that can be
tapped.
“These are among the reasons why we see an incoming boom in office and leasing industry… We have a
very good potential and capable of generating a lot of business and investment expansions within the
city,” Mr. Saguan said. — Maya M. Padillo
The Rise of Davao City Real Estate
December 30, 2017 9:21 pm

A Good Year for Real Estate

Davao City experienced the spotlight in 2017, with increasing interest of private investors and top
developers, along with other key events that furthered the view on Davao City as a stable, rising Central
Business District (CBD). Large developers Ayala, Megaworld, and Cebu Landmasters already have
developments in the pipeline, amounting to over 60 hectares of land. Most of the developments are
township developments spanning from 1.9 to 25 hectares of land each. As main developers are already
establishing their foothold in Davao City, interest from investors is growing: from small scale developers,
to consultants, to businesses with real estate as a secondary function. Along with top developer
presence, the year 2017 marked the prioritization of Mindanao infrastructure. The backbone of
economic growth, infrastructure plans are set to contribute heavily to the future CBD of the south. Some
of the upcoming infrastructure plans that are already in line for construction commencement are the
Mindanao Railway Project, Davao City Coastal Road, Davao City Bypass Road, and the Davao-Samal
Bridge Project.
Aside from the growing developments in Mindanao and Davao City, key events also took place that have
been controversial in the light of many but can be a testament to the resiliency of Davao City. A major
event that showed the city’s stability and resiliency was the declaration of martial law. A declaration
made of need to suppress the growing ISIS threats, the action was seen unfavorable in the eyes of most
investors outside of Davao City. While perception by investors outside the city turned unfavorable in
their interest to invest in Davao City under martial law, investors who have experienced life within or are
currently holding business in the city remain favorable in Davao City as a high potential city for business.
Though security was increase, locals saw that aside from the said increase in security and stricter entry
and exit to from the city, there was minimal difference of the situation before and during martial law, a
testament of Davao City’s capacity to maintain peace and order even without the ISIS threat. Business
activities at the time was “Business-As-Usual.” The declaration’s sole casualty for the real estate sector
was the hotel sector, where occupancy rates took a direct impact, along with 78 cancelled events and a
total of Php 20 million in unrealized revenues until June 6, 2017. This is mainly due to the limiting of local
and foreign entrants and the initial fear of tourist attacks.
Another hurdle is the safety issues raised by the Civil Aviation Authority of the Philippines (CAAP) in
terms of height restriction, which raised discussions on setting height restrictions within Davao City.
Implementing height limitations is a double-edged sword in the case that investors are keen to build
higher given great demands, but will be limited to doing so given the restriction. Higher developments
return the investments faster, and limiting this is unfavorable for investors. On the other hand,
implementing height restrictions show that the local government is taking things seriously in ensuring
the safety of passengers in line with the CAAP issue and is taking a step towards taking an active hand in
cultivating and maintaining a master plan.
Despite events and issues that affect real estate, the outlook for Davao City is still going strong with the
continuous inflow of local and international investors.
High price per square meter pushes investors to enter joint ventures over purchasing of properties.
Acquisition to focus on emerging areas in Davao City
With the rapid increase in asking prices for properties in Davao City in 2017, and in the face of great
demand, properties in prime areas are now being considered for joint ventures by large-scale
developers. The Bajada-Lanang area by itself has asking prices ranging from Php 50,000.00 to 100,000.00
per square meter, which local investors from Metro Manila find expensive in relation to Metro Manila
prices. Joint ventures are now being explored by potential investors and landowners in Davao City. The
hotel sector, more specifically, is in the phase of expansion as hotel developers are looking to enter the
market. Following the initial hurdle of the declaration of martial law, tourism is starting to pick up, and
the potential is large for hotel developers. Notable in Davao City is the entry of Dusit Thani under a joint
venture with Torre Lorenzo Development Corporation to develop the city’s first five-star luxury hotel.
For 2018, with the current prices, investors are now looking at fringe areas of Davao City over the main
strip of JP Laurel for purchasing properties. Property owners with land in fringe areas now have the
opportunity of liquidating their properties to fund other business ventures. With the extension of
acquisition and development of areas outside the main commercial strip of JP Laurel, those with
property along JP Laurel must start considering utilizing their properties, either to sell at more
acceptable rates, lease out the properties, look for joint ventures, or build on their own properties. Land
values are not expected to rise as heavily during 2018 as compared to the 2015 to 2017 growth.

The rise of quality, graded, office buildings in Davao City

For 2017, the Davao City office sector was in the limelight, with both the supply pipeline and office space
demand growing. Upcoming pipeline supply is expected at roughly 65,000 sqm worth of office space and
current occupancy is at 86% on the average, with grade A office buildings currently averaging 81%
occupancy. Graded office buildings that are ready for occupancy include Felcris Centrale, Alyvea,
Cybergate Delta, and Davao Finance Center, which are developments situated at prime, accessible
locations with building features ready to cater to BPO tenants. Over 82% of grade A and B office
buildings are occupied by BPO tenants, a testament to the city’s highly skilled, English-proficient labor
force. Demand from BPOs is still large at this rate, providing opportunity for land owners who are looking
to develop office buildings to cater to BPO tenants. Competitive rental rates of the office developments
in Davao City continue to give the city an advantage. With rental rates ranging from Php 400 to 630
pesos per square meter, overhead costs are cheaper as compared to cities such as Cebu, with rental
rates ranging from Php 500 to 700 square meters, and the CBDs in Metro Manila, with rates reaching
well above Php 1,000 per square meter.
For 2018, BPO demand is expected to continue, with overflows of online gaming identifying the potential
of Davao City as a potential hub for online gaming companies. Aside from this, a few serviced office
companies will enter the city, creating a competitive market for competition that is already established.
These serviced offices will cater to smaller scale BPOs, professional services, and freelance workers.
Metro Manila based offices are also looking to expand to Davao City, providing additional office demand,
as they acknowledge the potential of the rising city. Office space demand will continue to thrive and will
be matched by upcoming graded office buildings, setting Davao City as the central business district of
Mindanao.

Lease rates for BPO locators still okay

727 days ago

LEASING rates of Business Process Outsourcing (BPO) spaces in Davao City remained competitive and
attractive, an official said.

John Irene Del Campo, external vice president for industry promotions of the Association of Mixed-Use
Property Developers (AMPD), said that the average leasing rate per square meter for mix-use properties
including for BPO spaces did not post much increment as compared to the last five years, still an
attraction for BPO locators and other interested investors.

“At present, we have an average rent of P400 to P500 per square meter, yes there is an increase if we
compare it back five years ago at some over P250 per square meter but that is not a big leap and it is
still attractive to more investors,” she said, adding that Manila and Cebu rates are much higher at
P700 and above per square meter depending on the location.

AMPD said it has been compliant with the international standards for all homegrown developers to lure
more BPO companies and position Davao City as the most preferred real estate investment haven in the
country.

“With a lot of multinational BPO firms expanding here, we also are much more excited because surely
we will be able to lease a lot of available spaces,” she said, adding that developers has to come up with
the standards that will meet the qualifications of leaseholders from different industries especial IT-BPM.

She mentioned that one of the limiting factors in the industry is that local property developers built the
structure first before knowing the international standards.

Del Campo cited that the basic requirement for BPO is 1,500 building plate (one floor) but most of the
buildings are built less than the requirement.

She, however, said that even if it is a limiting factor, still they were able to provide the space the locators
needed.

“We hope that BPO locators will continue to come here. We are now guided by many consultancy firms
to the standards and that is why we unified, set the policies to be more competitive for this year and
next coming years, to really provide the increase in BPO locators,” she said.

As of last year, available spaces for office, BPO and commercial are now at 20,175 square meter. Of the
figure, 19,256 of which are for BPO spaces.

Del Ocampo also said that the industry now is not just driven by BPO locators but also from local,
national and even international companies who intend to expand or transfer in the city.

“On an average, we recorded some three to four inquiries per week. We are not affected by wait see
attitude of investors during election period,” she said.

The industry is on positive direction as the member companies of AMPD are considered as good
developers located in strategic location (accessible and feasible) for construction and holds a good track
of records. AMPD currently has six members and growing as it intends to actively invite more local and
homegrown property developers.

Present members of AMPD are Damosa Land Inc., Lanang Business Park by Dominic and Sons Realty and
Development Corporation, Felcris Centrale, JFM Development Corp., Matina IT Park, Metro Ace
Innovplas Corp.

Retail space for rent in Matina Crossing, Davao City

Davao del Sur, Davao City, Matina Crossing

Rent: ₱ 705 / month

Full description

Listing ID: 1763007

100 - 300 sqm Office Space for Lease in Matina, Davao City.

Available Units:

Ground Floor
80 sqms
100 sqms
300 sqms
Rate: 705.00/sqm

Commercial space for rent in a mixed-use commercial development along

McArthur Hwy, Matina, Davao City.

-Located in a highly-commercialized area

-Highly accessible for your employees via jeepney, taxi & private cars
-Very easy to locate as it is near malls, universities & commercial centers
-Class A building
-PEZA Accredited
-100% Back-up power
-2 elevators
-ample basement parking slots

Rate is still negotiable!

Office for rent in Davao City, Davao del Sur

Davao del Sur, Davao City
Rent: ₱ 500,000 / month

Full description
Listing ID: 1888261
NEW OFFICE SPACES FOR LEASE in Davao City (Prime Location).
Along MacArthur Highway, Matina, Davao City
Lease Rates:
Ground Floor: 605/sqm
2nd Floor – 6th Floor: 450/sqm
- highly-commercialized area
- ample parking space
- PEZA Registered

- Grade A building
- Handover Condition: Bare
- 100% power load and back-up power
- 87-92% efficiency rate
- Telco Providers: PLDT and Globe
- ideal for BPO and IT companies
- 2 elevators
- highly accessible by jeepneys, taxi and private vehicles.
- near restaurants, shops, food chains and residential area nearby
- Ready for Occupancy
For more details, feel free to contact the person listed.
Inquire now!
Contact Person: Hannah

Davao Office Market Update (2015)

Davao is turning itself into an even sweeter spot for BPO ventures and foreign investments, catching up
to the top outsourcing and offshoring destinations in the country. As Metro Manila quickly fills to the
brim and runs low on premium-grade office supply due to the constant high demand, the city in the
south is more than ready to absorb the spillover of opportunities from the metropolis. Investors and
firms that are looking to break away from the country's capital could find the city a viable investment
destination aside fromCebu . As Davao opens its doors to urban development and a buoyant real estate
market, it offers a great blend of a corporate environment mixed with laid-back countryside living in a
tourist hotspot. Industry experts can see so much potential in Davao as an emerging top IT-BPO service
destination. The wealth of opportunities that can be tapped here, however, are not without some
challenges. Here's a more in-depth look into Davao's office market:
Office market strengths and developments
The completion of the Abreeza Corporate Center put Davao in the investment map as an emerging BPO
location outside Metro Manila. About 3 years after developers have seriously considered the city's
potential for office development, numerous microdistricts have been established (Lanang
BizPark, Damosa IT Park, SM Lanang Premier, Davao Finance Center, Abreeza Complex, Pryce Business
Park, Filandia IT Center, Matina IT Park, Matina Town Park, Felcris Centrale), along with various PEZA
zones.
With several BPO hubs and business districts developed throughout Davao, various contact centers have
been set up in the city. The BPO sector's services have then expanded into data entry/transcription,
software, graphics, and content development, as well as engineering and design. The service expansion
has helped sustain the growth momentum for BPO and KPO as well.
Top BPO companies such as Convergys, Concentrix, Ibex Global, and VXI Global have already set up their
offices in the city. Other key players in the industry who may be interested to consider entering the
Davao office market soon include the top guns such as Accenture, JP Morgan Chase, SPi Global, and
TeleTech.
The BPO office supply in 2013 came to approximately 66, 600 sq m., and it has since grown steadily.
Currently, the available BPO office space is about 92,400 sq m. Considering the high demand and robust
market activity, about 47,000 sq m. of office supply will be added to the existing stock within the next 2
years. By 2017, the BPO office supply is anticipated to grow to as much as 139, 800 sq m. With this
expansion in Davao's office market, the city is poised to become a new BPO frontier.
For the second half of 2014, office vacancy in Davao was rated at 2.07%. The vacancy rates quickly rose
to 15.89% just in the first half of 2015, with the completion of new office spaces. Upcoming office supply
and major office developments include the 4,810-sq m. Ayala Business Center at Matina Town Square
(Q1 2016), the 14,000-sq m. Matina IT Park Building 2 (Q3 2016), and the 28,620-sq m. Davao Finance
Center at the Davao Park District (Q4 2017).
Aside from Davao's expanding office supply, what makes the city a good location for BPO and other
investments is not just the lower cost of living here but also the lower cost of doing business in this city.
The business cost isn't just significantly lower than Metro Manila rates. Upper net rental prices in Davao
(PhP 480/sq m.) are, in fact, far more enticing than Cebu's ongoing rates of PhP 695/sq m. The lowest
net rental rate in Davao is at PhP350/sq m.
With low crime rates, Davao is hailed as one of the safest places in the country, thanks to good
governance and outstanding public service. Aside from being a peaceful location with clean water and
fresh air, the city is also known for its tropical climate and predictable weather, as it is barely visited by
typhoons and is mostly safe from natural disasters.
The city offers not just quality office spaces and an amiable corporate environment but also a pool of
highly educated and talented workers. The city is a reliable source of graduates specializing in various
fields of studies such as engineering, IT, business administration, and medicine.
Opportunities and challenges
Landlords looking to building Davao should focus on building BPO-ready office spaces, which won't only
cater to BPO firms but will also be attractive options for other investments and businesses. These offices
are designed to meet the modern business needs and match the current office trends, focusing more on
efficiency instead of the traditional setup.
Developers should not just build offices with modern business amenities and 24/7 support facilities but
should also aim to create a live-work-play environment. Putting together various residential options,
office spaces, shopping outlets, and leisure venues just in one easily accessible area would make Davao a
forward-thinking BPO destination.
The local government should not just maintain peace and order but should also enforce and create
business-friendly policies to make Davao more competitive as a BPO location. Landlords should capitalize
on PEZA zones that offer more than a few benefits of their own, including tax incentives.
To maintain the BPO growth momentum in the area, key BPO standards and requirements should be
met. A reasonable cost infrastructure should be maintained. Connectivity should be improved through
fiber optics, along with other telecommunications facilities. Aside from having improved infrastructure,
workforce availability through education and training and an amiable business environment through
accessibility and efficiency should be the main priority as well.
All in all, it's not anything new that Davao is already being considered as an alternative BPO and office
destination. What remains to be seen is if Davao can sustain this interest by delivering quality
infrastructure and support services to keep key players coming.