Manila business districts office space seen to dip as BPOs move to provinces
MANILA, PHILIPPINES — The office space demand in Metro Manila’s major central business districts (CBDs) may “lose steam” as business process outsourcing (BPO) firms move to provincial sites, real property consulting firm KMC Savills said in its latest market report.
KMC Savills said, “Makati CBD and Ortigas Center are still at risk if office demand from the BPO sector loses steam in favor of provincial markets.”
The property consultant firm also noted that they have observed that BPO firms are now looking for sustainable buildings.
“With sustained outsourcing demand, greener and newer buildings will remain at the top of the pecking order,” the report stated.
Furthermore, KMC Savills said that while 2022 was a good year in terms of rebound and recovery for office real estate, they are not anticipating aggressive growth in occupancy.
“We do not see total occupancy return above 85% of office stock within our forecast horizon until 2025,” the firm said.
The Metro Manila office market rebounded in 2022 with a net absorption of around 270,900 sq. m. and a reversal from the negative take-up a year prior. More than a third of net demand was recorded in 4Q/2022 as rents continued to decline.
Related news
- Cognizant books $19.4Bn revenues in 2022 · 3 Feb
- China’s service outsourcing industry worth $363Bn in 2022 · 3 Feb
- ‘Roasted 0ktapus’ hackers are back with primary focus on the BPO industry · 3 Feb
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
