Leechiu Property Consultants Inc. (LPC) said office demand has hit 539,000 square meters (sq.m.) on a year-to-date basis, up 38 percent from last year’s 398,000 sq.m.
The figure is a 40.74 percent uptick from the 383,000 sq.m. uptake recorded as of end-September, just two months after LPC reported its third quarter monitoring for the office market.
“Supported by strong fundamentals, takeup at yearend will surpass projections despite the peaks and dips in demand that characterized the 2021 office arena,” said the property consultancy firm citing a still unfinished market study.
“Office demand levels driven by sustained take-ups from IT-business process management (IT-BPM) firms would have been higher had it not been for mobility issues brought about by the third quarter lockdowns,” said David Leechiu, LPC chief executive officer.
“Even at the height of the pandemic in 2020, IT-BPMs took up space. We foresee they will remain a catalyst of the office segment for as long as outsourcing remains a viable solution for recovering firms in the West,” he added.
Leechiu said the company expects the IT-BPMs to take up at least 54,000 sq.m. in the fourth quarter alone.
“It is also projected that total 2021 demand from this category by yearend would register at 229,000 sq.m. We are pleased to be seeing new brands from among the captives looking to offshore and outsource to the country,” he said.
Other than BPOs, online retail companies or e-commerce will continue to drive growth and expand both office and industrial requirements, Leechiu said.
The study also noted surging demand for industrial and warehousing to meet logistics requirements.
“In all likelihood, most companies will slowly ease back to the business districts while maintaining a portion of their operations on a work-from-home basis, said the study. This will give rise to hybrid operations,” he said.
