Filinvest REIT Corporation (FILRT), the commercial real estate investment trust (REIT) of the Filinvest Group, is expanding its leasing portfolio by over 12,000 square meters in new leases as well as new co-working spaces designed to meet present customer needs.
“We are glad to announce our fresh wins, as we strive to meet the renewed demand for high-quality office spaces from both new and existing tenants who recognize the value of our sustainability thrust,” said FILRT President and CEO Maricel Brion-Lirio.
She added that, “this will allow us to grow and diversify our portfolio of sustainable commercial properties that elevate the lives and well-being of our community.”
Co-working facility operators and new business process outsourcing (BPO) tenants—fueled by growth prospects brought about by locating in FILRT’s dependable and sustainable locations—are looking to add about 7,000 square meters in new leases.
FILRT said in a disclosure to the Philippine Stock Exchange that it is also in advanced talks with two major BPO firms looking to expand their current leases with FILRT.
An American professional services firm headquartered in New York with about 100,000 employees globally is about to sign for additional two floors in one of FILRT’s 16 buildings in Northgate Cyberzone in Alabang.
Another existing tenant, a BPO company headquartered in Europe with over 50,000 employees globally, is expected to follow suit for an additional 2,300 square meters of office space.
This brings FILRT’s expected new leases to 12,400 square meters. This is on top of the almost 10,300 square meters of new leases signed earlier this year.
Cognizant of the changing office leasing landscape, FILRT said it is accelerating its co-working or flexible office space solutions in partnership with the largest provider in the Philippines to ably respond to the shifting customer demand brought about by hybrid work setups.
This will not only provide an additional source of revenues but it also balances the office leasing portfolio.
One of FILRT’s objectives is to diversify the office portfolio by reducing the concentration on large BPO names and increasing the share of co-working and traditional tenants in the mix. This will be done while continuing to service the needs of expanding and migrating BPOs.
As a portfolio manager, FILRT’s strategy is to expand in key central business districts in Metro Manila and toward major regional hubs in the Philippines with high and stable occupancy and deliver additional value by driving more efficient and sustainable cost of operations.
New asset acquisitions will continue to focus on Grade A commercial properties and will expand beyond office leasing to include other asset classes such as retail, leisure, residential and industrial properties into its portfolio.
FILRT’s Weighted Average Lease Expiry (WALE) is 7.1 years as of end-1Q23, and is forecast to increase as new leases and renewals for the year set in.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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