Philippine office space demand nears 1M sqm amid IT-BPM growth
MANILA, PHILIPPINES — The demand for office space in the Philippines is on track to reach one million square meters (sq.m.) this year, driven by the rapid expansion of the Information Technology and Business Process Management (IT-BPM) industry.
According to Mikko Barranda, Commercial Leasing Director at real estate services firm Leechiu Property Consultants (LPC), this year’s office demand might outpace the September estimate of 809,000 sq.m. and the entire 2022 tally of 989,000 sq.m.
“From experience, we see a lot of the leasing activity taking place in the last three months of the year. There is some confidence and optimism from our side to say that we should be able to surpass 2022 numbers,” he added.
Barranda highlighted a recent trend among IT-BPM companies, which seem to be gravitating towards leases across multiple sites. About 37% of the sector’s transactions, equivalent to 124,000 sq.m., were centered in Metro Cebu, Quezon City, and Clark, Pampanga.
With the overall office supply standing at 18.1 million sq.m., Metro Manila houses a dominant 82% share. Within this metropolis, Bonifacio Global City and Makati City emerge as the top office destinations, driven by their attractively low vacancy rates.
On concerns about the potential ban on Philippine Offshore Gaming Operators (POGO), Barranda conveyed optimism, stressing that the market isn’t overly dependent on POGOs and can thrive without them.
