Office take-up for 2014 to reach 300,000-sqm level, real estate advisor says

Zambo Times by Jigs Nepomuceno, 03-27-2014

MANILA - Real estate services firm, KMC MAG Group, has seen the country's three major central business districts (CBDs) this 2014 to be on its peak year of office space take-up.

KMC MAG Group Senior Manager for the Commercial Division Gerold Fernando said in a press briefing Wednesday, the country's major CBDs including Makati, Bonifacio Global City (BGC), and Ortigas are expected to reach the 300,000-square meter (sqm) level of Premium and Grade A office space take-up.

 

KMC MAG reported that this year would be the highest Premium and Grade A office space take-up in span of eight years from 2008 to 2015 for the three CBDs.

Office space take-up in 2008 reached 220,000 sqm; 130,000 sqm in 2009; 60,000 sqm in 2010; 180,000 sqm in 2011; 190,000 sqm in 2012; and 200,000 sqm in 2013.

For next year, KMC MAG projects Premium and Grade A office space take-up to decline to 280,000-sqm level; still, the second highest office take-up from 2008.

"BGC and Ortigas have some new supply to be taken up in coming years," told Fernando.

BGC is expected to have the highest take-up rate as it absorbed five new buildings such as Eco Tower, W Fifth Avenue, RCBC Savings Bank Corporate Center, SM Aura Office Tower, and Globe Telecom Headquarters.

Ortigas is also anticipated to increase its vacancy rate slightly due to new supply.

On the other hand, Makati CBD has limited prime office space. Thus, it is expected to absorb lower vacancy rate.

Upcoming prime offices this year within the major CBDs are:

--V Corporate Center in Makati CBD with total floor area of 32,276 sqm;

--Net Park in BGC with total floor area of 62,000 sqm;

--One World Place in BGC with total floor area of 33,356 sqm;

--Twenty-Four Seven McKinley in BGC with total floor area of 28,926 sqm;

--RCBC Savings Bank Corporate Center in BGC with total floor area of 35,780 sqm;

--Robinsons Cyberscape Alpha in Ortigas CBD with total floor area of 40,678 sqm;

--45 San Miguel Avenue Building in Ortigas CBD with total floor area of 20,350 sqm; and

--Rockwell Business Center Tower 3 in Ortigas CBD with total floor area of 32,930sqm.

KMC MAG Vice President Yves Luethi noted that Philippine real estate industry will be robust for this year with its competitive cost in the region.

Average office rental rates in Manila is at US$ 27.2 per month against highest rental rates of Hong Kong at US$ 196.9 per month.

The business process management industry, tourism, and overseas Filipino workers remittances will drive the growth of the local real estate sector. (PNA)

CTB/KMC