IT-BPM boosts PH office space demand by 46%
MANILA, PHILIPPINES — A notable surge in demand for office space in the Philippines has been recorded in the first half of 2023, showing a significant 46% increase compared to the same period last year.
According to real estate company Leechiu Property Consultants (LPC), the total office demand from January to June reached 554,000 square meters (sq.m.), a leap from the previous year’s 379,000 sq.m.
LPC Director for Commercial Leasing Mikko Barranda added that 77% of this demand was generated in Metro Manila, equating to 426,000 sqm. The remaining 23% came from the provinces, contributing 128,000 sqm.
A considerable portion of the demand was led by the Information Technology and Business Process Management (IT-BPM) sector, which consumed 128,000 sq.m. in the second quarter alone, amassing 237,000 sq.m. for the first half of the year.
Despite the economic slowdown and the rise of remote work, Barranda points out the notable growth in demand from the IT-BPM sector.
Philippine Offshore Gaming Operators (POGOs) also contributed to the demand, increasing to 77,000 sq.m. in the second quarter, bringing the total to 88,000 sq.m. for the year’s first half.
Despite this burgeoning demand, Metro Manila’s office building vacancy rate maintains a steady 17%, attributed to the continuous influx of new buildings. However, Barranda predicts a decrease in office supply and vacancy rates in the coming year.
