Manila, July 13, 2018 - Office space demand across Metro Manila has been surging. But the lack of available space in major business districts such as Makati and Fort Bonifacio has been compelling tenants to look to alternative locations such as the Manila Bay Area. Both BPO and non-BPO firms have been opening shop in the burgeoning business hub due to its proximity to the airport and ease of access to other business districts in the country’s capital.
The Manila Bay Area is a thriving business hub in Metro Manila. The surging demand for space is enticing developers to ramp up office construction. As of end-2017, Manila Bay Area’s office stock reached 400,900 sq m of gross leasable area (GLA), more than double its total GLA of about 180,000 sq m by end-2014. Colliers Philippines sees the business district’s office stock growing by 130% to 930,000 sq m by 2021. For the first six months of the year, the Bay Area cornered 20% of total transactions in the country’s capital, making the business district among the largest contributors to Metro Manila office space absorption during the period. Despite the significant amount of new office supply, vacancy remains at 2%, driving lease rates up. As of 2Q 2018, rents in the Manila Bay Area hover between PHP700 and PHP1,500 per sq m a month, up by about 8% to 10% compared to the previous quarter.
A popular option among tenants is the iMET BPO building within the Metro Park development in the Manila Bay Area. Metro Park is a mixed-use project by Federal Land that integrates residential, retail, leisure and office components. Aside from its prime location, the building is a popular choice among occupants due to its proximity to major infrastructure projects and various public transportation options.
Apart from outsourcing firms, traditional companies engaged in logistics, advertising, construction, online shopping, and consultancy have aggressively been expanding on the back of a 6.5% to 7% annual economic growth. The Philippine economy is projected to remain robust over the near to medium term and this should help sustain the BPO and traditional firms’ demand for office space within the country’s capital.
“At present, office space vacancies in Makati Central Business District (CBD) and Fort Bonifacio hover between 2% and 3%.This compels locators to look for alternative locations such as the Manila Bay Area,” said Andrew Gomez, Colliers International Philippines’ director for landlord representation.
Among iMET BPO building’s tenants are an outsourcing firm, a logistics company, and a state-led firm. The building is currently 100% occupied and this indicates the strong demand for office buildings within the Manila Bay Area such as iMET BPO.
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