Colliers urges developers to build more office space in Davao City
Developers should build more office spaces in Davao City as demand from outsourcing occupiers is expected to rise, said professional services and investment management firm Colliers Philippines.
In a recent report, Colliers Philippines said a limited new supply of office space will be completed in Davao from 2022 to 2024 after posting an annual average delivery of 27,300 square meters (sq.m.) from 2018 to 2021.
It projects an annual delivery of 6,100 sq.m. of new supply from 2022 to 2024. By the end of 2024, Colliers forecasts Davao’s office stock to reach 371,700 sq.m.
“Colliers encourages developers to build more office towers in anticipation of pent-up demand from outsourcing occupiers,” it said.
Colliers’ report also noted that 84% of the office deals recorded in Davao during the first half of 2022 were from outsourcing firms.
“Davao returns as one of most feasible BPO expansion locations outside of Metro Manila as seen in strong transactions activity,” said Colliers Philippines Associate Director for Office Services-Tenant Representation Kevin Jara.
The professional services firm also stated that Davao is one of Mindanao’s most competitive cities, making it a preferred location for multinational outsourcing companies.
For the remainder of the year, Colliers sees greater office space take-up from outsourcing and traditional firms.
