Property consultant KMC Savills said vacancy rate in the office property segment in Clark hit 23.5 percent in the first half of the year, almost triple from 8.5 percent in the fourth quarter of last year and reverting to 2017 levels.
The spike occurred as 15,000 square meters (sq.m.) of supply came online in the area, while 36,300 sq.m. of space was vacated for the period.
Average rents declined by 3.7 percent in the second quarter P521.4 per sq.m. per month.
“With the influx of new supply in the coming periods alongside lackluster leasing activity, rents are anticipated to remain under downward pressure in the short- to midterm,” KMC said.
KMC said amid the widespread adoption of remote working by both traditional occupiers and the business process outsourcing sector, vacancies are expected to “rise significantly as more companies reduce their office footprint.”
“Tenants that are active in the market have ample options to choose from, and landlords can be expected to offer generous concessions and flexibility to attract and retain tenants,” it said.
