Office space demand to grow in next 6 months - BusinessWorld Online

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OFFICE SPACE demand in the Philippines is expected to pick up in the next six months, driven mainly by the information technology and business process management (IT-BPM) sector as lockdown restrictions ease and many firms issue back-to-office orders.

Leechiu Property Consultants said active office leasing requirements likely to be completed in the next six months went up to 358,000 square meters , reflecting pent-up demand.

In the first quarter, Philippine office demand reached 124,000 sq.m. despite the reimposition of a stricter Alert Level 3 in Metro Manila in January due to the Omicron-driven surge in coronavirus disease 2019 cases. While office space transactions were affected by the lockdown, more deals were concluded after the alert level was downgraded.

In the next six months, LPC said IT-BPM firms are expected to take up 195,000 sq.m. or 55% of the 358,000 sq.m. of live requirements to be completed during the period. LPC noted that the vacancies at PEZA-registered office buildings is expected to slightly increase in 2023. However, there will be limited supply of new PEZA spaces in 2024 and 2025, posing a challenge for the IT-BPM sector, it added.

Luxury village land values, as well as luxury condominium prices have continued to rise despite the pandemic. Residential units in key districts have also seen an increase in their capital values in the first quarter of 2022, and are now back to pre-pandemic levels.

 

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IT-BPM firms to continue driving PH office demand in next 2 quarters — LeechiuThe property consultancy firm sees 358,000 square meters in office demand in the next six months, with information technology and business process management (IT-BPM) firms accounting for over half of live office requirements for the period. The sector has represented 31% of overall demand in the first quarter of 2022, it adds. The sector has represented 31% of overall demand in the first quarter of 2022, it adds.
Source: CNN Philippines - 🏆 13. / 63 Read more »