LEECHIU Property Consultants (LPC) is optimistic about the prospects of the Philippines office leasing sector on healthy demand.
“We see very healthy live requirements. There are companies today that are pushing hard to transact (hoping to close the deal) before the end of the year, which gives us a lot of hope,” said
Mikko Barranda, LPC director for commercial leasing, in a press briefing yesterday.
Onwards to 2025, Barranda said “we have seen a very large supply injection in the past years as many buildings were completed.”
LCP expects vacancy to drop.
“We do note that next year, supply will drop significantly which means vacancy levels will go down starting 2025,” Barranda said.
LPC noted 3.1 million square meters (s.m.) in vacant office space, out of 18.4 million sq.m. of supply, translating to a 16.85 percent vacancy.
LPC said office space demand continues to be driven by information technology-business process management (IT-BPM) companies that continue to expand.
New entrants make up 12 percent of IT-BPM demand, which highlights the country’s position as an attractive destination for new outsourcing businesses.
As of end-September, new spaces leased amounted to 900,000 sq.m., up from 809,000 sq.m. last year.
