The business downturn caused by the coronavirus pandemic and the shakeout of Philippine Offshore Gaming Operators (POGOs) have caused massive losses across Metro Manila’s office properties in the third quarter, property consulting firm KMC Savills said.
In its third-quarter property market report, KMC Savills noted that office occupancy in the metropolis declined for the second straight quarter, with nearly 47,800 square meters of office space vacated during the period. This hiked office vacancy rate in the metropolis to 7.3 per cent from 5.4 per cent at end-2019.
KMC Savills managing director Michael McCullough said the reopening of the economy would hopefully cap the average vacancy rate in Metro Manila below 10-11 per cent. But if tough lockdown protocols would be reimposed, he said the vacancy rate could worsen to 15 per cent.