Property consultancy Colliers predicts outsourcing firms and traditional occupiers will lead office space demand for the remainder of 2022 as more and more companies return on site.
This after Colliers recorded a 30- percent increase in office deals in the first quarter to 146,100 square meters (sq.m.) in Metro Manila from a year ago.
The positive net takeup is the first time after seven consecutive quarters of negative absorption, Colliers said.
Of the takeup, 41 percent are for business process outsourcing (BPO) companies.
“The improvement in business confidence has driven the expansion of local and multinational firms in the country, including outsourcing companies,” said Joey Bondoc, Colliers Philippines associate director for research.
Colliers in a research said it saw about 60,200 sq.m. of office transactions from outsourcing firms in the first quarter, an increase of 68 percent from the previous year.
The report identified outsourcing companies such as Alorica, ePerformax, and Michael Page which took up office space in the Bay Area, Makati Fringe, and Makati central business district during the period.
Bondoc said Colliers recommends that occupiers take advantage of rental corrections in major business districts.
In the first quarter, traditional and outsourcing companies are taking advantage of the rental correction and availability of new office buildings in major business districts.
According to Colliers, the average office rents in Metro Manila have dropped by about 30 percent compared to the pre-pandemic rates.
Colliers recommends that tenants that are still in a wait-and see mode consider occupying flexible workspaces. Those with long-term occupancy plans should lock in spaces in new and sustainable office buildings and take advantage of rental corrections and other concessions given by landlords.“ This should provide an opportunity for occupiers to implement flight-to-quality measures and move to core areas such as Makati CBD and Fort Bonifacio. Irma Isip
