In a statement, LRG said data from the first six months of 2022 showed that the office vacancy rate in Metro Manila is now at 19%, but is expected to improve as office demand picks up with increased economic activity.
According to LRG, the Makati business district has a pipeline of 307,000 sq.m. in office spaces that is expected to be completed by 2028. The business district in Taguig has 250,000 sq.m. of office space in the pipeline, while Pasig has pending office space of 139,0000 sq.m. “Opportunity is seen for office space tenants and locators due to the 19% vacancy rates, ample supply of office space pipeline in all office space grades and the possible weakening of rental rates for landlords to shed the available office supply in the market,” LRG said.“The back-to-office directive for those BPOs operating in PEZA areas will increase demand by approximately 400,000 sqm over the next six months,” it said.
Companies are also likely to secure larger office spaces to ensure social distancing amid the pandemic, it added.