October 17, 2019
THE office vacancy rate in Metro Manila dropped to a “healthy” 5 percent in the third quarter from 6 percent in the second quarter on the back of strong demand, according to a real estate consultancy firm.
In a briefing in Makati City on Wednesday, Pronove Tai and Associates Philippines Chief Executive Officer Monique Cornelio-Pronove said the Bay Area had the lowest vacancy rate at 0.4 percent and Quezon City had the highest at 11 percent.[The] “Bay Area has the tightest vacancy at…4,000 square meters. [The] Quezon City vacancy rate [has been in the double digits] in the last two years due to high vacancies in new completions,” Pronove said, referring to finished office spaces.
The vacancy rate in Mandaluyong City is 9 percent; Makati, 2 percent; and Taguig and Muntinlupa cities, both 6 percent.
Pronove said “robust office demand continues despite” the moratorium imposed on economic zones and Philippine offshore gaming operations in the National Capital Region (NCR).
Traditional offices, which rose by 61 percent to 122,000 sqm from July to September from the year-earlier 76,000 sqm, accounted for 40 percent of demand in the period.
These offices were taken up by food and beverages (15 percent), insurance (14 percent), government or non-government organizations (8 percent), real estate (7 percent), engineering or construction (5 percent), healthcare (4 percent), media or arts (4 percent), logistics (3 percent), manufacturing (3 percent), and others (17 percent).
Information technology-business process management accounted for 32 percent; offshore gaming, 23 percent; and flexible co-working spaces, 5 percent.
Quezon City had the most office supply — office spaces ready for occupancy — in the third quarter with 230,000 sqm, or 57 percent, after the completion of nine buildings there.
Taguig came next with 101,000 sqm, or 25 percent, after one building was finished during the period.
Office supply for the period totaled 402,000 sqm.
By the end of the year, Pronove expects office stock to reach 11.7 million sqm, up 10 percent from the year-earlier 10.6 million sqm.
Office stock as of end-September reached 11.4 million sqm.
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