BPO shift to provinces may affect Makati, Ortigas offices
MANILA, PHILIPPINES — The office market in Makati and Ortigas could see a drop in tenants if Business Process Outsourcing (BPO) companies would continue moving to provinces.
According to commercial real estate agency KMC Savills, an oversupply of office spaces could be expected in both areas “if office demand from the BPO sector loses steam in favor of provincial markets.”
The firm added that companies are also looking for greener and newer buildings to move to for their operations.
Still, KMC reported that Metro Manila’s office market, as a whole, is on its path of recovery as it ended 2022 with a net absorption of 270,900 square meters (sq.m.).
“More than a third of net demand was recorded in the fourth quarter of 2022 as rents continued to decline,” KMC Savills noted.
“We forecast net absorption to slightly increase in 2023 but may be isolated in the top submarkets,” the report added.
