Hybrid, flexible work to impact NCR office market
MANILA, PHILIPPINES — The office leasing activity in the National Capital Region (NCR) or Metro Manila could be affected by hybrid and flexible work arrangements, said property consultancy firm JLL Philippines.
Lizanne Tan, JLL Philippines Head of Office Leasing Advisory, said, “Hybrid is now a non-negotiable element of the workplace ecosystem.”
JLL Philippines believes tenants will prefer markets with a strong talent pool and office locations where people can live, work, and socialize.
In its latest report, JLL Philippines revealed that gross leasing volumes in Metro Manila stood at 669,000 square meters (sq.m.) in 2022, 67% higher than in 2021.
Demand from offshoring and outsourcing firms led transaction volumes at 65.2% year-on-year, followed by corporate occupiers at 28.6%.
JLL also noted that the vacancy rate in Metro Manila rose last year, while the vacancy rate in Metro Cebu declined to 17.8%.
“There is also supply pressure from incoming stock across sectors in Metro Manila and Metro Cebu,” noted JLL Philippines Head of Research and Strategic consulting Janlo de los Reyes.
JLL’s report added that the Metro Manila office sector expects 1.2 million sq.m. of incoming stock until 2025.
