Demand and supply both soar in Metro Manila’s office space market
Demand for office space within the Metro Manila area is remaining strong, despite the government moratorium on developing new economic zones within the region – a decision seen as having serious implications for the IT-BPM industry – and a move by the Philippine Amusement and Gaming Corporation to stop granting licenses to offshore gaming operators.
According to Monique Pronove, president and CEO of Pronove Tai International Property Consultants, a Makati City-headquartered commercial real estate specialist, the total volume of new office space available in the Metro Manila is expected to exceed 1.2 million square meters by the end of the year, up 9% on last year’s final figure, which itself set a new record. Drilling deeper into the figures, Pronove’s Q3 Metro Manila Office Market Overview and Full Year Outlook noted that 15 buildings were added to the capital’s office supply in the third quarter of the year, with Quezon city and Taguig city contributing 82% of the total.
Despite this newly-available space, vacancy levels actually declined, falling from 6% in the previous quarter to 5% this time around, with the yearend final figure expected to be within the 4-5% range. In terms of demand, the report said 40% was for traditional offices spaces, 32% for the IT-BPM sector, 23% for offshore gaming at and 5% for flexi-workspaces.
