PH office take-ups to continue growing in 2023, says COL Financial
MANILA, PHILIPPINES — Office take-ups are projected to continue growing this year despite calls for more workplace flexibility, said COL Financial Group Inc.
According to the online stockbroker, these take-ups will be driven by the Information Technology and Business Process Management (IT-BPM) and traditional office segments.
However, the leasing rates would still be subdued, and vacancies would remain high “due to the scheduled completion of more projects.”
Citing figures from Colliers, COL Financial stated that Metro Manila is expected to have a 20.5% vacancy rate this 2023 — with Makati and Pasay having the highest at 22%, followed by Ortigas at 17%.
“The vacancy rate should peak this year given the lower new supply expected to be completed in 2024 and 2025,” they added.
While the overall picture looks bleak, COL Financial noted that they expect office leasing revenues of listed developers to grow this year due to the contribution of new spaces added last year and those to be added this year.
Renewal rates are also projected to remain high as they usually have been pre-pandemic.
