BPOs will occupy 65% of Manila offices in 2024 — CBRE
MANILA, PHILIPPINES — The business process outsourcing (BPO) industry will continue to drive growth in Metro Manila‘s office market, with CBRE expecting the sector to represent 65% of leasing activity this year.
According to the real estate advisory firm, Metro Manila’s office vacancy rate will ease to 18.8% from 19.4% in 2023, driven by the BPO sector’s continued expansion.
CBRE’s optimistic forecast also hinges on the assumption that annual vacated space will not surpass 200,000 square meters.
“Every quarter, you see some companies are still adjusting their space take-up because they’re dealing with the realities of how their employees are reacting to certain policies that they institute,” said CBRE Country Head for Advisory and Asset Services Jie Espinosa.
The current availability of office space in Metro Manila stands at 1.72 million square meters (sq.m.), with the Bay area and Alabang having significant portions of this space.
Despite the challenges posed by the COVID-19 pandemic, CBRE added that the property sector is on a recovery path, with expectations of a further decline in the vacancy rate to 5.4% by 2027.
Similarly, property services firm Cushman & Wakefield expects the office space demand in Metro Manila to surpass 300,000 sq.m. in 2024, driven by the expanding Information Technology and Business Process Management (IT-BPM) sector.
