BPOs continue to dominate the PH office market in Q3
Business Process Outsourcing (BPO) firms continue to lead office space absorption within and outside Metro Manila, said property consultancy firm Colliers Philippines.
In its latest market briefing, Colliers PH revealed that office transactions rose to 495,600 square meters (sq.m.) in the first nine months of the year, up 72% from last year’s figures.
In Q3 alone, office deals reached 168,700 sq.m., higher than the last year’s 69,400 sq.m. Outsourcing firms led office space transactions from June to September, with 29,700 sq.m.
After two consecutive years of negative net take-up, we see net absorption reverting to positive territory in 2022. The firm said that the improved leasing activity indicates that the Metro Manila office market is sustaining its recovery.
The firm added that they are seeing more occupiers in spaces in various central business districts (CBDs) within the capital — namely, Fort Bonifacio, Makati, and Ortigas.
As for the countryside, Colliers shared that provincial deals accounted for 23% of total transactions across the country, reaching 145,000 sq.m. Cebu, Davao, and Pampanga cornered 85% of the transactions, with outsourcing firms also dominating take-up.
By year-end, Colliers PH said that office space net absorption could reach 140,000 square meters (sq.m.), a far cry from the −273,300 sq.m. net take-up in 2021.
