Colliers: Office market sustained momentum amid challenges

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DURING the first quarter , total office transactions in Metro Manila reached 240,100 square meters , 88% higher versus the same period in 2023. Traditional firms cornered 44% of total office space deals recorded in Metro Manila, followed by business process outsourcing firms at 33% and Philippine Offshore Gaming Operators at 23%.

Despite sustained demand, net take-up remains muted in Metro Manila due to continued space surrenders due to nonrenewal and rightsizing of occupiers. In Q1 2024, we recorded 161,000 sq.m. of new surrenders, slightly higher than the average quarterly vacated space of 145,000 sq.m. in 2023. We expect this trend to persist until early 2025 as the remaining pre-pandemic leases are yet to expire.

While there is an increase in demand for office space in provincial areas, Colliers has noted that some markets have limited availability of options for outsourcing locators with typical area size requirements of 2,500 sq.m. Using our Q1 2024 data, Colliers has identified regions with high, middle, and low availability of options for a typical BPO requirement of 2,500 sq.m.

 

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