Metro Manila’s overall office vacancy has hit 13% in the first half of 2021, marking another record high of total grade A office stock.
According to the 2Q Metro Manila Office Briefing report by commercial real estate agency KMC Savills, Ortigas Center reported the highest vacancy rate of 19.3%, followed by Quezon City (18.3%), Alabang (17.1%) and Makati CBD (10.7%).
Office vacancies have been further compounded due to the completion of previously delayed projects, as well as non-renewals and pre-termination. By 2024, the agency predicts that vacancies may breach one million square meters of office space in the market.
Average rents also declined by 1.6% from a year ago. With premium offices experiencing vacancies, KMC Savills expects more decrease in rent and further flexibility in payment terms.