Property consultant Colliers International said adopting green and sustainable features “plays a crucial role in future-proofing office towers beyond the pandemic.”
“As part of occupier retention as well as attraction strategies, Colliers believes that existing landlords and developers should focus not only on wellness attributes, but also on green retrofitting activities,” it said.
Colliers recommends that developers upgrade their buildings by “creating a seamless and efficient overall experience for today’s workforce.”
“This can be done by incorporating technology and design enhancements in office space as we see the increasing importance of LEED (Leadership in Energy and Environmental Design) and WELL certified options to attract major tenants,” it said.
“Overall, Colliers foresees a market that is due for an upgrade driven by shifting tenant profiles that cater to the more discerning Knowledge Process Outsourcing (KPO), multinational corporations (MNCs) and traditional occupiers. Given this, the market moves from basic structures to more spacious, LEED certified buildings, with more energy efficient systems, consequently improving the overall experience of employees and visitors alike,” it added.
Citing data from the Philippine Statistics Authority, Colliers noted that between 2010 and 2019, Filipinos’ health-related expenditures grew by an average of 7.9 percent per annum, faster than the growth of other consumer spending sub-sectors such as hotels and restaurants (7.6 percent), food and beverage (5.4 percent), communication (5.0 percent), and clothing and footwear (1.8 percent).
“This indicates that health and wellness are among Filipinos’ major priorities. We see both employers and employees putting a greater emphasis on health post-pandemic. Landlords and tenants are likely to implement health and wellness initiatives to retain occupants and employees,” it said.
As developers ramp up construction of office towers across Metro Manila, Colliers said product differentiation plays a crucial role in ensuring that buildings are appropriate to the needs of the tenants given the increasing options in the market.
“Colliers Philippines believes that today’s labor force is also more discerning in choosing which companies to work in and the type of workspace is critical in attracting and retaining the best talent,” it said.
In a survey conducted by insurer Cigna in 2017, about 66 percent of respondents said it was important for their employer to have a wellness program in place and 59 percent said having such program would impact their decision on whether to join a new employer.
Green building certifications then become a seal of authenticity to end-users for standard green building practices, Colliers said, noting that these widely accepted standards tend to be appreciated by middle and up-market Philippine and MNC occupiers.
“LEED, BERDE (Building for Ecologically Responsible Design Excellence), WELL, and Excellence In Design and Greater Efficiencies (EDGE) are green building certifications widely used in the Philippines. These rating systems complement each other with unique criteria addressing a common goal: to support the Philippines’ commitment to reducing emissions by 70 percent by the year 2030,” it said.
“The immediate benefit of applying green building standards is to promote a safe environment, improve health and wellbeing, and begin to address the environmental impacts of real estate development,” it added.
Colliers expects LEED buildings to account for 37 percent of new office supply from 2021 to 2023.
“Already, we see more developers constructing LEED-certified buildings to respond to the demands of an increasingly broad and more discerning clientele. Some of the LEED-certified buildings due to be completed from 2021 onwards are One Ayala Tower 1, SM Mega Tower, The Glaston Tower, Primex Tower, and Glas Tower, among others,” Colliers said.
Another major building due to be completed during the period is Arthaland’s Cebu Exchange Tower, the largest office tower to be built in the Visayas-Mindanao area with a gross leasable area of 108,500 square meters.
Colliers said Cebu Exchange will offer large floor plates (approximately 5,000 sq.m.), flexible unit cut-ups and a smart building management system. It is registered with U.S. Green Building Council, LEED, Philippine Green Building Council and BERDE.
