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Government offices have become the second-largest contributors to office transactions this past quarter, driven by their ongoing relocation and expansion into new office buildings in bustling commercial hubs.   

Historically, government agencies in Metro Manila have been concentrated in Manila and Quezon City to centralize their operations. However, recent shifts have seen these agencies moving from outdated and often cramped quarters to modern developments in the metro’s prime districts. This decentralization is deemed to support the growth of government services, meeting the rising needs of the population. 

Transfers Within Metro Manila

In Metro Manila, BGC has become a major area for government relocations in the past few years.  The Philippine Senate, which has been based in the GSIS Building in Pasay City since 1997, is moving to the New Senate Building in Fort Bonifacio. Similarly, the Supreme Court plans to relocate from Manila to a brand-new, state-of-the-art complex in BGC. 

The Bay Area, recovering from the setbacks of the previous year, is also emerging as another prime location for government offices. The Department of Foreign Affairs (DFA) and the National Bureau of Investigation (NBI) have recently leased a combined 53,000 sq m in DoubleDragon Tower and Filinvest Cyberzone Pasay, respectively. These leases are expansions to their current offices which aim to provide better public services. 

A Strategy for Decongestion

Government relocations are not limited to Metro Manila; several agencies are also planning to move to emerging growth centers outside the metro, such as New Clark City (NCC). With major infrastructure projects and the modernization program of Clark International Airport, NCC is increasingly becoming attractive for a wide range of economic activities, making it a prime location for government offices.  

This move beyond the metro is believed to align with the administration’s strategy to alleviate congestion in Metro Manila, which has long struggled with urban crowding. In fact, according to a study by the Japan International Cooperation Agency, an estimated PHP 3.5 billion daily is lost from the infamous traffic situation in the country’s capital. 

Making the Move

Apart from practical considerations of location, government offices typically require fully fitted spaces that ensure no downtime in services.  

To start with the relocation process, organizations are required to register and use the Philippine Government Electronic Procurement System (PhilGEPS) to bid on government contracts before relocating to new office spaces managed by private companies. PhilGEPS serves as the main entry point for all of the Philippine government's procurement-related information and operations. Similarly, office buildings must register with the system to make their spaces available to government organizations. 

Get more insights on the latest trends in Metro Manila and beyond! Download our latest report or visit our website at www.kmcmaggroup.com to access more reports across various sectors in the Philippines.  

 

Article Written By Lean Cacatian and Christopher Argamino