Philippine office space take-up to increase by 66%
The country’s office space take up for the year is expected to hit 1.06 million square meters, substantially higher than last year’s 638,000 sq.m., according to real estate consulting services firm Colliers International. Colliers said the boost can be attributed to strong demand complemented by record-high competition. For the rest of the year, the demand is expected to hit 413,000 sq.m., with a supply of 440,000 sq.m. The firm puts the vacancy rate in Metro Manila at 5%. In the next three years, the property consultant expects vacancy rates of 5% to 3.6% as demand hits 740,000 sq.m. per year vis-à-vis a supply of 820,000 sq.m. per year from office projects, mostly in Fort Bonifacio, the Bay Area, and Ortigas Center. Demand will be driven largely by the expansion of business process outsourcing (BPO) companies that delayed plans last year owing to short-term uncertainties in the country’s business environment.
