NCR office leasing up by 21.2% in Q2 — JLL PH
Office leasing volumes in the National capital region climbed to 21.2% in the second quarter of the year, according to real estate services firm JLL Philippines.
In their latest statement, JLL Philippines said that, unlike Q1, the demand for Q2 is more diversified. Non-IT-BPM services account for 45% of office space demand in the capital city. Meanwhile, IT-BPM and POGO players represent 42.7% and 12% of acquired leasing spaces, respectively.
Office vacancies in the metro are also stabilizing, only reaching 17.5% for the past four quarters, despite the market seeing 54,090 square meters (sq.m.) in new supply in the second quarter.
JLL Philippines Head of Research and Strategic Consulting Janlo de los Reyes said, “The improving demand and the absence of supply saw vacancy ease.”
“Rents are gradually climbing, and lease terms are returning to pre- pandemic arrangements,” he added.
JLL is confident that the Metro Manila real estate market will see continued gradual market recovery, and sustained momentum in Q3 due to the return-to-office (RTO) demand of several employers.
As for the recent State of the Nation Address (SONA), de los Reyes said that the plan to provide increased incentives outside Metro Manila, build more transport and railway infrastructure, and accelerate digital expansions in businesses could affect the Philippine real estate market.
The “no-more lockdowns” promise is also a key factor as it would encourage organizations to operate back to pre-pandemic levels.
