Filinvest REIT Corp. (FILRT), a key player in the real estate investment trust market, has expanded its leasing agreement with EXLService Holdings Inc. (EXL), strengthening its presence within the Northgate Cyberzone in Alabang. This expansion adds another 1,750 square meters to EXL's office space in Filinvest Two, bringing its total footprint in the area to nearly 7,000 square meters.

Since partnering with FILRT in 2014, EXL has consistently expanded its operations in Northgate Cyberzone, underscoring the success of FILRT’s strategy of providing world-class office spaces that meet modern business needs.

Sustainable Growth for Tenants

This new lease extension reflects FILRT’s commitment to supporting the growth of its tenants while upholding the highest sustainability standards. Both Filinvest Two and Plaz@ E, where EXL initially began its operations, are part of FILRT’s portfolio that is almost entirely powered by renewable energy. As of now, 94% of FILRT’s properties are powered by clean energy, reflecting FILRT’s focus on sustainability as a core value.

With Filinvest Two’s EDGE certification, FILRT continues to provide premium Grade A office spaces designed to meet the evolving demands of today’s businesses. This sustainability-driven approach aligns with EXL’s own environmental goals, helping both companies grow responsibly.

A Preferred Business Address

Filinvest City, Alabang has long been a strategic business hub, especially for industries like business process outsourcing (BPO). Companies leasing space in Northgate Cyberzone enjoy access to advanced infrastructure, modern amenities, and a talented workforce based in the south of Metro Manila. For companies like EXL, which specialize in data analytics and artificial intelligence, this environment provides the perfect setting for growth.

The ongoing partnership with EXL demonstrates FILRT’s ability to foster long-term tenant relationships, offering businesses spaces that support not only their current needs but also future expansion.

Despite industry-wide challenges, including elevated vacancy rates across the real estate sector, FILRT is staying ahead by focusing on diversification. The company is working to reposition its tenant mix to include more traditional and non-traditional office spaces. This diversification strategy is designed to ensure resilience, especially as the real estate landscape shifts with advancements in artificial intelligence and technology.

Looking forward, FILRT aims to improve its overall occupancy rate to 95% by 2026. The recent expansion with EXL signals that, despite market hurdles, FILRT continues to attract high-quality tenants with its premium spaces and dedication to sustainability.

While FILRT’s partnership with EXL is a positive step, it comes amidst a backdrop of modest growth for the real estate trust. FILRT has faced an industry-wide elevated vacancy rate of 19%, which has weighed on its overall performance. The company reported a 34.5% decline in net income for the first nine months of 2023, largely due to lower occupancy rates in Alabang.

However, FILRT is proactively working on strategies to enhance its performance. This includes a renewed focus on tenant retention and attracting new businesses, particularly within the fast-growing BPO sector. FILRT’s plans to bolster its renewable energy initiatives and further diversify its tenant mix are designed to mitigate these challenges and position the company for long-term success.