Demand for office space in Metro
Manila continues to keep vacancy rates low amid anticipated new
"A critical factor on the first
half's impressive performance is due to landlords' willingness to
mitigate rents in order to stay competitive," Fredrick Rara,
KMC Savills research and consultancy manager, told the Manila
Strong occupier demand from the
offshoring and outsourcing market is expected to keep office space
vacancy at reasonable rates in the following quarters, but
increasing supply pressure will keep rental rates tempered.
According to KMC Savills data,
263,400 sq.m. of new office space was completed in the second
quarter of 2017. Bonifacio Global City (Seen in photo) accounted
for more than half of the new supply with 140,800 square
Single-digit vacancy rates were
also retained in the Bay Area and Alabang submarket, which composed
the rest of the new supply during the quarter. The Philippines
remains to be a top location for foreign investments, and
have fueled growth in investments in 2016.
For the full report, read here.