Rick Santos is likely a familiar name to anyone acquainted with the Philippines property market. His company, formerly CBRE Philippines, was the Philippines’ first fully integrated real estate service provider, filling a gap in the market and ultimately providing jobs for 1,200 staff. The business was instrumental in the massive growth in the business process outsourcing (BPO) sector, which, as one of the fastest growing industries in the country, has helped buoy the overall Philippines economy. The company recently announced a new long-term franchise partnership with Knight Frank.

How did you get into the real estate industry?

I’ve always been interested in the real estate industry. What fueled further this passion was a post graduate thesis I did on the “Spatial Implications of Information Technology on Office Location Theory,” which tackled the global impact of the outsourcing revolution. There was immense potential for the industry to generate new jobs, create a middle class, and grow the economy. Today we continue to see this realized with the BPO industry’s expansion in the Philippines.

What are some of your career highlights from your time in the industry?

Since founding the business in 1994 as the country’s first fully integrated real estate service provider, I’ve grown Santos Knight Frank (formerly CBRE Philippines) to its current size of more than 1,200 staff operating across the Philippines. That growth has been organic and the business now consists of 11 stand-alone, market-leading business lines with specialist teams focusing on: Tenant Representation & Office Agency; Research & Consultancy; Valuations; Investment & Capital Markets; Facilities Management; Technical Services; Property Management; Project Management; Asset Management; Residential Services; and Global Business Services.

We’ve been instrumental in the growth of the BPO sector and were the pioneers in bringing many of the multinational BPO and offshoring companies to the country. That sector now employs more than 1.5 million people and generates annual revenues in excess of US$26 billion. For the longest time, we’ve also sought to develop Real Estate Investment Trusts (REITs) opportunities in the Philippines.

On January 1 this year, our company formed a partnership with Knight Frank as our new long-term partner. Founded in 1896 and headquartered in London, Knight Frank is the largest privately owned global real estate consultancy, with more than 400 offices in 59 countries across the globe – this includes a strategically important partnership with Newmark Grubb Knight Frank, including the market-leading West coast operations of Newmark Cornish & Carey in the United States.

What are the biggest issues facing the industry in the Philippine market at the moment?

The Philippines’ growth is unstoppable, but also is the urbanization trend. One major challenge in the industry is to find effective solutions to address concerns on the environment, infrastructure, and urbanization, especially in Metro Manila where congestion is a challenge. At Santos Knight Frank, we’re helping companies explore opportunities outside the capital such as in Clark, Cebu, and Davao. Countryside development will also create a ripple effect on jobs, income, and the local economy.

How has the industry changed in the time you have been involved with it?

Once the “sick man of Asia”, the Philippines has now become the fastest rising economic star in the region. The economy grew by 7.1% during the third quarter last year. Trickling down to the real estate industry, we’ve seen more cross-border investments over the years and growth across sectors like office, commercial, BPOs, industrial, tourism, and residential. In the ‘90s, the major central business districts were Ortigas and Makati; now you have growth areas such as Bonifacio Global City and Bay Area in Metro Manila and Global Gateway Logistics City in Clark outside the capital that reflect a robust expansion of the sector nationwide.

What changes would you like to see over the next two to five years in the industry?

We are optimistic that the government will improve the rules governing REITs. Favorable rules will entice companies to venture into REITs and realize the opportunities promised by this new investment mechanism.

What advice do you have for people who are just starting out in similar careers?

Find a good mentor who will guide you as you grow. Focus and be the best of what you do. And build long-lasting relationships with clients and colleagues.

What do you believe is a unique factor of doing business in The Philippines?

The Philippines’ economic fundamentals remain extremely strong, which makes the country an attractive destination for investments. In 2016, the real estate industry saw continued residential sales demand, retail expansion, robust office market, and sustained industrial production, and we expect this to continue in the next years.

What is your favorite holiday destination in Asia?

The Philippines! Since founding the company, I’ve traveled to countless domestic destinations like Palawan and Boracay and have seen the immense potential of the Philippines for tourism. With better infrastructure coming, I am confident the country will be more visible on the map.

What is your outlook for your sector/s for the next year?

Southeast Asia is one of the most exciting regions for real estate today, and the Philippines stands on a prime spot as its fastest growing economy preferred by global investors. We expect to see sustained economic growth in the Philippines, fueled by favorable demographics, continuing foreign direct investment, expansion of the BPO sector, strong overseas remittances, and continued infrastructure development – all of which will drive robust demand in the real estate sector and elevate the country to become a regional hub for global client service delivery.

Where would your next purchase be?

We’ve always been bullish about the potential of Philippine cities outside Metro Manila such as Cebu, Clark, and Davao. We’ve already invested in these locations, and we’re looking at strengthening our presence even more.

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