Amid IT-BPM sector’s WFH arrangements, Metro Manila office deals to increase

MANILA, PHILIPPINES — Office space take up is seen to increase despite the information technology business management firms implementing remote work arrangements, real estate management firm Colliers said in its recent market briefing.

“Metro Manila office space deals continue to increase despite concerns of rationalized office space requirements from outsourcing companies implementing hybrid work arrangements. Net takeup was positive in 2022, after two consecutive years of negative net absorption, indicating that actual take-up is greater than the amount of office space being vacated,” said Kevin Jara, Colliers’ Associate Director, for Office Services-Tenant Representation.

Based on Colliers’ data 2022 registered a 43% increase in office space take up. The IT-BPM industry remains to be the major driver for growth and demand.

With the implementation of remote work in many industries, Colliers see a rising trend in flexible workspaces.

“Flexible workspaces will likely play a crucial role in tenants’ post-Covid operations,” Jara said.

Increased demand for flexible workspaces outside Metro Manila is also expected in the coming years.

Colliers also noted the rise in healthcare information management demand will offer opportunities to the real estate industry.

“Landlords should also take advantage of healthcare outsourcing firms’ office space
requirements particularly those looking for high-quality spaces being offered at a discount.
Developers should constantly be in touch with outsourcing firms with requirements outside the
capital region,” Colliers’ report read.