Office property market sustains demand
Manila was recorded to have the lowest vacancy rates in Asia in the 1st quarter of 2017, suggesting a strong sustained leasing activities.
According to Asia Pacific Office Overview report by real estate services firm Cushman & Wakefield, Manila recorded a 2.4 percent vacancy rate, followed by Tokyo (3.9 percent), and Ho Chi Minh City (4 percent).
The BPO sector is one of the major drivers of demand for office space in the Philippines.
Growing Demand
In a separate report, Colliers International Philippines in its first quarter report on offices that demand was seen to grow by 8 percent in the next 12 months.
Declining vacancies
The first quarter report on the office property market by KMC Savills Research showed that Metro Manila continues to enjoy a strong demand for office spaces.
However, performance across submarkets had a mixed result, BGC (Bonifacio Global City) experienced a decline despite an increase in new supply. Although there was some decline in the submarkets, the overall vacancy rate in Metro Manila still increased.
Additional Space
According to research, the first quarter of 2017 experienced an increase of an additional 162,200 sqm of office space in Metro Manila.
The vacancy rate among Metro Manila submarkets are as follows:
- Quezon City at 11.9 percent
- Makati CBD (1.9 percent)
- Ortigas Center (1 percent)
- BGC and Alabang (both at 0.9 percent)
- Bay Area at 0.2 percent.
New supply of Grade A office spaces is expected between now and 2020.
