Office rental rates in Metro Clark to ‘slightly dip’ next year

The office rental rates in Metro Clark in Pampanga will slightly go down next year amid the expected turnover of 280,000 square meters (sqm) of new spaces, an official from the real estate consultancy firm JLL Philippines said.

In a virtual briefing on Tuesday, Ian Perez, director for capital markets at JLL Philippines, discussed the real estate trends and investment opportunities in Clark, Pampanga.

He also discussed how Clark is an ideal location for local and foreign investors and locators moving forward.

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In terms of supply, he said there will be an additional 280,000 sqm that will be delivered in the first quarter of next year, while there is 700 hectares of land available for lease for property developers.

The demand for Clark’s real estate landscape will be driven by offshoring and outsourcing, storage and logistics, and manufacturing, he added.

As for the rents, Perez also expects it to remain steady over the next few months, while it may slightly dip next year as new supply becomes available in the market.

“[Office rents] are still cheaper [compared to Metro Manila], and it’s going to get more economical,” Perez said.

In terms of price per sqm, Perez said office rental rates in Clark range about P500 per sqm to P850 per sqm, while it is P1400 per sqm to P1800 per sqm in Metro Manila.

Aside from the rates, other factors that make it cheaper to operate in Clark would be electrical cost, management fee, utilities, among others.

Clark is comprised of several districts namely Clark Freeport Zone, Clark International Airport, Clark Global City, and New Clark City.

It is envisioned to become a pillar of economic growth in Luzon that will help decongest Metro Manila, the Philippines’ capital.

Just last week, the Clark Development Corporation’s (CDC) Smart City project proposal ranked 1st during the evaluation of the applications for Urban Development-Type Planning Projects under K-City Network 2021 Smart City Development Planning grant competition.

This was announced by the Korean Ministry of Land Infrastructure and Transportation (MOLIT).

The Clark Smart City Complex: Urban Development Project is among the 111 entries from 39 countries submitted for evaluation to the K-City Network 2021: Smart City Planning Program of MOLIT. The CDC is set to receive up to US$600,000 in the award.

The grant will be used in planning for the implementation of the Smart City in Clark.

It will fund the review of the CDC masterplan and the drafting of a feasibility study and business plan, according to CDC Chief of Staff Dennis C. Legaspi who also directed the submission of CDC’s proposal. The project is set to start in August 2021.

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Tarcisius Tiotuyco, CDC Corporate Planning Manager, said that the project targets a 104-hectare prime property in the first phase of implementation.

After the first phase, the project shall include all six districts of the 4,000-hectare Clark Freeport Zone and the airport area under the Clark International Airport Corporation (CIAC).

The Clark Smart City project is the first project of its kind in the country and is seen as a model for future developments in the Clark Special Economic Zone and adjoining provinces.

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Article and Photo originally posted by Manila Bulletin last June 30, 2021 8:30am and written by Madelaine B. Miraflor.

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