Property consultant KMC Savills has expressed confidence on the continued expansion of office spaces in the provinces amid spending of the government to improve infrastructure.
Joe Curran, KMC Savills chief executive officer, said in a briefing yesterday this expansion will enable the business process outsourcing industry, the biggest user of office spaces, to tap the talent pool available in the provinces.
KMC Savills in a statement Wednesday said the regional office market saw significant improvement in the first half of the year with the Visayas demonstrating strong growth.
Iloilo received 105,200 square meters (sq.m.) of new office space, bringing its space stock to 262,000 sq.m., KMC Savills noted.
Cebu, however, is expected to surpass Iloilo with 143,800 sq.m. of office space coming online by the end of 2025.
The property consultant said Davao’s office market posted a net take-up of 12,400 sq.m., while Bacolod posted a net take-up of 3,700 sq.m.
Net take-up in Metro Cebu hit 39,000 sq.m., while Metro Clark recorded a 19,000 sq.m. take-up for the period.
“Rental rates in Iloilo and Bacolod have dropped, reflecting rising vacancies, while Metro Cebu, Clark, and Davao saw increases driven by strong demand,” KMC Savills said.
Iloilo’s rents dropped 8.68 percent to P574.4 per sq.m. per month due to rising vacancies. KMC Savills said it expects the trend to persist.
Metro Cebu had the largest rent increase, with a rise of P7.5 to P552.7 per sq.m.
“Davao observed a slight increase in rental rates due to strong demand and limited supply,” KMC Savills said.
Iloilo’s vacancy, meanwhile, was recorded at 28 percent.
