Colliers urges office landlords and tenants to brace for a newer, better normal as leasing recovery gathers pace in H2
Colliers Philippines saw an improvement in transactions in 2021 as traditional and outsourcing firms continue to drive office leasing transactions across Metro Manila. We are expecting a further improvement in deals in 2022.
Supporting our projected recovery in office leasing is the completion of close to 900,000 square meters (9.7 million square feet) of new office supply. Tenants should continue seizing opportunities in the market, including lower rates in new buildings in major hubs such as the Bay Area, Ortigas central business district, Quezon City, and Alabang. Landlords should continue lining up new projects and activate in a timely manner to capture demand as outsourcing and traditional occupants start reporting on-site.
According to Dom Fredrick Andaya, Colliers Senior Director and Head of Office Services – Tenant Representation: “The pandemic opened new avenues for collaboration between occupiers and landlords. Relationship building and mutual support will be key as businesses pivot towards recovery.”
Among Colliers’ recommendations are for stakeholders to push work-from-home perks from Philippine Economic Zone Authority (PEZA); to support the lifting of Administrative Order 18 (AO18), which imposed a moratorium on the approval and processing of new ecozones in Metro Manila; lock in space in newer buildings in key central business districts; and to partner with flexible workspace operators.