Manila, November 6, 2018 - For years, Ortigas Center has been ripe for redevelopment. Colliers sees the completion of new office buildings from 2019 to 2021 redefining the Ortigas Center skyline and boosting the business hub’s stature as a preferred commercial address.

From 2019 to 2021, Ortigas Center will account for nearly a quarter of the new office space to be completed during the period. Among the new office towers expected to be delivered over the next 12 to 36 months are  Robinsons Cyberscape Gamma by Robinsons Land; The Podium West by BDO-Keppel Land; Jollibee Tower by Double Dragon; SM Mega Tower by SM Prime Holdings;  Exquadra Office Tower by Unioil Petroleum Philippines; Corporate Finance Plaza by Amberland Corp.; Glas Tower  by Asya; and One Filinvest by Filinvest Land; These new buildings will offer more than 560,000 sq m of new office space. “Over the near to medium term, we see these new office towers transforming the Ortigas skyline,” said Andrew Gomez, Colliers International Philippines director for landlord representation.

Similar to the trend we are seeing for the entire Metro Manila market, office space demand in Ortigas Center remains diversified. Firms providing outsourcing, animation, insurance, engineering, and consultancy services have taken up space over the past nine months. These include Common Ground, a foreign co-working space operator, as well as Xpoint Technologies, Kohler, Vitarich Corp., Sony Music, Columbia Pictures, and FWD Life Insurance occupying space at IBP Tower. Colliers believes that co-working space operators taking up space in Ortigas Center is a good indication of the area’s viability for flexible workspace operations. 

Colliers sees Ortigas Center lease rates rising due to the completion of high-quality office space. At present, rates in Ortigas Center hover between PHP 650 to PHP 950 per sq m a month and we see these rates rising to about PHP750 to PHP1,200 per sq m a month over the next 12 to 36 months.

BUILDING

Target Completion

GLA, sqm

Robinsons Cyberscape Gamma

2018 4Q

43,300

SM Keppel Land Office Tower/ The Podium West

2019 2Q

102,700

Jollibee Tower

2020 1Q

48,000

SM Mega Tower

2020 1Q

92,900

Exquadra Office Tower

2020 4Q

61,600

Corporate Finance Plaza

2021 1Q

86,400

Glas Tower

2021 1Q

91,200

One Filinvest

2021 1Q

39,700

Total

565,800

Given the potential for faster lease rate acceleration, Colliers encourages tenants planning to occupy space in Ortigas Center to start locking in available space. Tenants should consider pre-leasing office space as the tight vacancy in Ortigas Center and neighboring business districts indicates that space due to be completed over the next 12 to 24 months will easily be taken up by both new and expanding tenants.

Meanwhile, Colliers encourages outsourcing companies accredited by the Philippine Economic Zone Authority (PEZA) to consider PEZA-proclaimed office spaces in Ortigas Center such as Saint Francis Square BPO, Robinsons Cyberscape Gamma, 30th Corporate Center, and Ortigas Technopoint One.

Colliers believes that the redevelopment of Ortigas Center bodes well for the Metro Manila office market in general.

“Metro Manila’s rank in Tholons’ latest Top 100 Super Cities survey improved from 4th in 2017 to 2nd this year. This should entice more outsourcing firms, flexible workspace operators, and multinational corporations to locate in Ortigas Center over the next 12 to 24 months. These firms’ office space demand should be supported by Ortigas Center’s expansion and redevelopment,” Gomez added.

Colliers believes that there is a demand for new and modern workspaces especially in Ortigas Center. We see the quality of office towers being complemented by the profile of Fortune 500 companies and multinational banks that intend to occupy space in new Ortigas Center office towers.


Contact


Philippines
Colliers International | Manila 11F Frabelle Business Center, 111 Rada Street Legaspi Village, Makati City 1229 Philippines | Tel: +632 888 9988