Philippine office demand projected to pick up in 6 months

Office space transactions were affected by the lockdown, but once the alert levels downgraded, more deals were concluded

As more companies encourage their employees to work onsite, it is expected for office space demand in the Philippines is projected to pick up in the next six months. This demand, according to BusinessWorld, will be driven by the information technology and business process management (IT-BPM) sector.

Philippine office demand went up to 124,000 sqm during the first quarter of 2022 despite implementing Alert Level 3 in Metro Manila in January.

Overall, office space transactions were affected by the lockdown, but once the alert levels downgraded, more deals were concluded.

“Despite having almost half of the first quarter shut down, the office leasing transactions continued to grow… “The pipeline of deals that we see wanting to be transacted has been exceeded…. [This] shows you the number of companies that want to sign a lease. These are some of the highest numbers we have seen in the last nine quarters,” Leechiu Property Consultants (LPC) Chief Executive Officer David T. Leechiu said.

In the first three months of 2022, the IT-BPM industry continued to drive office space demand, accounting for 39,000 sqm. IT-BPM enterprises are projected to take up 195,000 sqm, or 55 percent, of the 358,000 sqm of live requirements to be completed in the next six months, according to LPC. After growing by 7.1 percent in 2021, the sector is predicted to increase by 6.5 percent annually in 2022.

More: Office demand in the Philippines to be driven by IT-BPM companies

CNN Philippines reported that Trade Secretary Ramon Lopez, in a separate statement, clarified companies operating outside ecozones have more flexibility regarding their work-from-home arrangements. The same cannot be said about firms under the Philippine Economic Zone Authority (PEZA)

“If PEZA-registered companies intend to adopt a hybrid WFH arrangement, especially if justified by the nature of their operations, e.g. service-exports, the same can only be adopted by revising the PEZA Law and Create Act,” Ramon Lopez said.

The Property Report editors wrote this article. For more information, email: [email protected].