PH capital’s office vacancy rate reached 20.1% in Q3
Vacancy rates in the Philippine capital region of Metro Manila remained in double digits for the third quarter of 2022, reaching 20.1%.
According to property consulting firm KMC Savills, the high vacancy was primarily due to landlords sticking to high rates that left “large gaps” between bids and asking rents.
In an interview with the Inquirer, KMC Senior Research Manager Fredrick Rara said, “We saw vacancies did not budge for most submarkets. Our view is that landlords have yet to give in to market pressure and offer below-average market rents.”
Vacancy rates were at 19.9% and 20.6% during the first and second quarters of the year.
“We think there should be some urgency given that demand from the IT-BPO industry is no longer the same pre-pandemic. And as central banks continue raising interest rates, we believe landlords are not in a position to hold onto their previous asking rents,” Rara added.
KMC Savills’ Q3 report also showed the highest rental rates in Metro Manila were at Makati City at P1,056.2 (US$18.43) per square meter (sq.m.), Bonifacio Global City at P1,022.4 (US$17.84) per sq.m., and Ortigas at P680.7 (US$11.88) per sq.m.
