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
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
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
--Net Park in BGC with total floor area of 62,000 sqm;
--One World Place in BGC with total floor area of 33,356
--Twenty-Four Seven McKinley in BGC with total floor area of
--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
The business process management industry, tourism, and overseas
Filipino workers remittances will drive the growth of the local
real estate sector. (PNA)