Manila, September 4, 2018 - The Makati Central Business District (CBD) remains a primary choice of outsourcing and traditional companies. The dearth of available space in the business hub coupled with strong demand has sustained overall office vacancy of only 1 to 2 percent. This makes recently-completed office towers such as The Insular Life Building a popular choice among tenants that want to occupy prime space within Makati CBD.
The completion of new office buildings within Makati CBD has been slowing down due to the lack of developable land. At 3.3 million sq m of gross leasable area (GLA) as of 2Q2018, Makati CBD accounts for about a third of Metro Manila’s office stock. But Colliers Philippines does not a see a significant increase in the CBD’s supply over the next three years. From 2018 to 2021, we only see about 330,000 sq m of new space being added to the business hub’s office stock, raising Makati CBD’s total office GLA by only a tenth by end-2021.
But Makati CBD remains a prime business address in the Philippines and this explains why major business process outsourcing (BPO), knowledge process outsourcing (KPO), and traditional firms such as multinational corporations (MNCS) continue to gravitate towards the business district. “Given the sustained office space demand in Makati CBD, we see overall vacancy staying between 1% to 2% over the next 12 to 18 months,” said Andrew Gomez, Colliers International Philippines’ director for landlord representation.
Among the office buildings in Makati CBD that is benefitting from robust office demand is the newly-renovated The Insular Life Building, a 14-storey office tower. The building was among the first high-rise buildings in the Philippines when it was built in the Sixties. The office tower’s renovation was completed in April 2017. Understanding the building’s historic value as a city landmark, the Company retained the gently curving façade; while most of the renovations focused on interiors and behind the building. The office tower is PEZA certified, thus, PEZA-registered tenants are assured of tax perks and other commercial benefits. The building is also LEED registered with a typical floor plate of about 1,600 sq m. It has a 5-storey car park and a multi-purpose hall, making it an ideal location for meetings and events at the heart of Makati City.
At present, the Insular Life Building is 100% leased out. Among its tenants are business and knowledge process outsourcing companies, banks, and flexible workspace operators.