FLI bets on gov’t tenants to drive office leasing growth

GOTIANUN-LED property developer Filinvest Land, Inc. (FLI) is optimistic about the growth of its office leasing portfolio, with government tenants expected to absorb vacancies left by the business process outsourcing (BPO) sector due to remote work adoption, according to its chief executive officer (CEO).

“Our office portfolio delivered strong performance in 2024. Despite market headwinds, we achieved revenue and income growth,” FLI President and CEO Tristaneil D. Las Marias told BusinessWorld on the sidelines of Filinvest Group’s 70th anniversary celebration last week. 

FLI’s office leasing revenue, including that of its listed subsidiary Filinvest REIT Corp., rose by 3% to P4.81 billion, it said last week.

“For 2025, we are seeing signs of recovery, particularly in our office spaces catering to government agencies,” Mr. Las Marias said.

Given the strong contribution of government tenants to FLI’s office portfolio in 2024, the company plans to attract more state agencies through competitive bidding.

FLI also emphasized the need to diversify its tenant mix amid ongoing vacancies in the BPO sector, Mr. Las Marias said.

“The BPO sector faces challenges, as many companies prefer remote work. To address vacancies, we are targeting other tenant segments, particularly government agencies, which have the budget for long-term leases.”

In 2024, about 32% of vacated office spaces in Metro Manila were from the information technology-business process management sector, according to real estate services and investment firm CBRE.

“There is a notable flight to quality among government agencies. Given the superior specifications, accessibility, and overall convenience of our office properties, we see strong demand from this segment,” Mr. Las Marias said. 

Demand for FLI’s office spaces is also driven by their integration into mixed-use developments, offering direct access to residential, commercial, and retail establishments, he added. 

Mr. Las Marias also underscored the strategic locations of FLI’s office developments and their proximity to major transportation hubs.

“Living near the workplace significantly enhances convenience for employees. We take pride in developing office spaces that provide premium specifications, access to commercial and wellness amenities, and the option to reside within the same development.” — Beatriz Marie D. Cruz