EDGING out major office districts, such as Makati and Ortigas, Bonifacio Global City came out as the top office location in the third quarter of 2015, registering the highest number of occupied spaces at that time, property advisor CBRE Philippines reported.
In its Q3 2015 Metro Manila Marketview report, CBRE said the expansion and relocation of foreign and local firms into BGC drove the office takeup in the area.
“Leasing activity in Metro Manila was largely driven by the continuous expansion of multinational companies and offshoring and outsourcing (O&O) firms,” CBRE said.
It noted that BGC continues to be an alternative office location to the Makati CBD for multinational companies and O&O firms, especially with the new stock that has entered and is expected to enter the BGC market.
CBRE said vacancy rate in BGC slightly inched up to 3.48 percent due to the entry of new supply in the area.
“Moreover, the new office supply in BGC has dynamically moved office figures across Metro Manila with the completion of Net Park and One World Place,” the firm reported.
CBRE said the entire Metro Manila had a positive net absorption of 77,304 square meters during the third quarter of 2015, despite the new stock of office spaces.
But it noted that during the said quarter, Makati and Quezon City business districts had negative net office space absorption of 3,983 square meters and 2,129 square meters, respectively, most likely because of consolidation of space by some tenants in other office locations.
Demand for office space, the company stressed, remains robust, as seen in the trading of pre-committed spaces. It said some of these spaces were transacted two to three years before the building is even completed.
“Developers continue with their programmed launch of new office buildings to accommodate the foreseen continued growth in demand,” CBRE observed. “Locators are seeing this as an opportunity for ‘flight to quality,’ as Business Process Outsourcing companies relocate to new buildings that offer more or less the same amenities and competitive lease rates.”
CBRE said leasing activity in Metro Manila was largely driven by the continuous expansion of multinational companies and O&O firms.
It said average office rents in the metropolis were recorded at P848.88 per square meter per month, a 1.51-percent quarter-on quarter rise from the second quarter of 2015.