Filinvest Land Inc. (FLI), the Gotianun Group’s publicly listed property developer, is optimistic about the continued growth of its office leasing and residential businesses this year.

In an interview, FLI President and CEO Tristan Las Marias said their office business is benefiting from a focus on leasing to government entities, even as the market experiences more supply than demand due to the exit of Philippine offshore gaming operations (POGOs).

FLI is maintaining its occupancy rate despite the completion of new buildings. Las Marias noted, “That’s growth, right? If you maintain the same average occupancy and then add more office space, that’s improvement.”

He explained that this is due to the company’s focus on government offices, as government agencies have a high demand for new office space. FLI recently leased a building in Makati to the Department of Trade and Industry and one in Pasay to the National Bureau of Investigation.

“We started focusing on government leasing last year. We’re now tapping into more government offices because they have the budget. Hopefully, we’ll secure more leases this year,” Las Marias said.

In addition to the boost from government leasing, he said they are also securing new leases from traditional offices. Many businesses are establishing themselves in Filinvest City in Alabang because it is “starting to become a regional hub in Southeast Asia.”

Las Marias also said that there is a “flight to quality” by both government and private lessors, creating opportunities for FLI since most of its buildings are Grade A. “If people are moving out of their old offices to upgrade at friendlier rates, we can help them.”

Regarding FLI’s residential business, he pointed out that they are not affected by the glut in the middle-income condominium market since more than half of their projects are outside Metro Manila.

Approximately 50 percent of FLI’s residential projects are in the Visayas and Mindanao, with the remainder in Metro Manila and other parts of Luzon.

He anticipates that their residential business will be boosted by declining interest rates, which make home mortgages more affordable, and the weakness of the peso, which increases the purchasing power of dollar earners. About 30 percent of FLI’s residential sales are from overseas Filipino workers (OFWs).

“We are one of the developers that expanded our international sales channels early, which is why we have a healthy share of OFW sales. Our presence in 50 cities and 24 provinces allows us to service most of their requirements.”

“When OFWs invest, particularly for rental income, they choose places they are familiar with so their relatives can manage and maintain the properties,” Las Marias explained.

This year, FLI will open its second building in General Santos City, its second in Naga, and its third in Dagupan. The company is also expanding in Bacolod.