Office leasing in the Philippines dropped by 35.7% to 72,000 square meters in the third quarter compared to last year amid pandemic and election uncertainties, according to real estate services firm JLL Philippines.
JLL Philippines Research Head Janlo C. de los Reyes said that the contraction is mainly due to the extension of the remote work setup in the country.
de los Reyes added that office leasing decisions had been pushed back as companies are still “uncertain” about their future work environments.
However, the office leasing sector is still expected to recover as the Philippines remains one of the “best outsourcing destinations” in the world.
Foreign investors are expected to move back to the country in the third quarter of next year after the elections as there would be clarity in terms of the political landscape and policies in the industry.
Moreover, JLL Philippines Vice-Chairman Joey M. Radovan said that hybrid workplaces will remain post-pandemic but not all companies will get rid of their physical offices.