The Business Process Outsourcing (BPO) companies and traditional occupiers continue to dominate the office market demand in the Philippines as they take up 26,400 square meters (sq.m.) in the first quarter of the year.
According to real estate firm Colliers, this spike in office takeup is due to rental corrections and the availability of new office buildings in major business districts.
Colliers Senior Director, Office Services-Tenant Representation Dom Fredrick Andaya said that “the Philippine office market appears to be turning a corner with the stabilization of occupancy as we recorded a positive net take-up of 26k sqm after seven consecutive quarters of negative net absorption.”
He added that the return-to-office mandate and expansion plans of other companies “should accelerate take-up for the remainder of 2022.”
Meanwhile, Colliers reported that about 306,100 sq.m. of new office space was completed in the first three months of the year. This is more than double the 114,300 sq.m. completed in Q4 2021.
In 2022, the real estate firm is expecting about 821,900 sq.m. of new office space to be completed all over the country with nearly 60% of the new supply coming from the Ortigas CBD, Makati Fringe, and Bay Area.