Metro Manila’s office rental rates to drop 30%, unless BPO sector “comes back”
Due to the continued quarantine restrictions, property consultancy firm Lobien Realty Group (LRG) forecasts a 25 to 30 per cent decrease in office rental rates this year.
LRG CEO Sheila Lobien said average office rent across Metro Manila will remain soft in the next months due to low demand in office space, “unless the business process outsourcing industry would come back right away and expand, and the COVID-19 vaccine would be rolled out in the market.”
LRG clarified that in 2020, office rents did not decline due to the nature of the contractual agreements of Philippine Offshore Gaming Operator (POGOs), which usually pay security and advance deposits a year in advance.
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