Annual Demand For Office Space At An All-Time High

Metro Manila

Annual demand for office space in Metro Manila is at an all-time high and already 2012 has overtaken the record of 360,000 sqm set in 2011, according to global real estate services firm Jones Lang LaSalle Leechiu (JLLL).

From January to October this year, office take-up in the metropolis registered at 230,000 sqm, observed Sheila Lobien, JLLL director for project leasing.

Of the 445,000 sqm of new office space available in the market for 2012, already 325,000 sqm were leased (142,000 sqm or 32 percent) and pre-committed (183,000 sqm or 41 percent).

It is expected that the bulk of the balance of 120,000 sqm will be leased before yearend.

She noted that an additional 200,000 sqm of office space coming available in 2013 was pre-committed even before the onset of the new year.

“We have recorded 413,000 sqm in the first 10 months of 2012. Matched with a very low vacancy rate of four percent across all the business districts, these figures appear to indicate rising business confidence.”

She disclosed that Bonifacio Global City (BGC) registered the lower vacancy of 25,000 sqm versus Makati’s 43,400 sqm. Since 2011, BGC has been consistently gaining the highest figures for pre-committed space among the leading business districts.

She noted: “We see BGC emerging as a preferred location. Interest in BGC developments still under construction – such as the 26-story W Fifth Avenue – runs high. Despite the fact that the building is set to be completed only in the second quarter of 2013, firms are already committed to take up space in the project,” said Lobien.

W Fifth Avenue will add 33,000 sqm of office space to BGC and is accredited by the Philippine Economic Zone Authority (PEZA), entitling locators in the building to tax incentives.

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