MANILA will have the highest increase in office space in the entire Southeast Asia in 2016, even topping Jakarta and Singapore, global property services group Jones Lang Lasalle has forecast.
“Manila is top in Asia in terms of percentage of new [office]space coming up,” said Chris Fossick, JLL Managing Director for Singapore and Southeast Asia, in a media briefing Thursday.
Fossick said supply of office space in (Metro) Manila, Jakarta, and Singapore is expected to grow by 10-20 percent, with Manila posting the highest, as it is seen growing by 19 percent in terms of office supply come 2016.
Around 870,000 square meters of new office space is expected to come up in Metro Manila next year, most of which will be located in Makati and Bonifacio Global City, according to Fossick.
Following Manila, he added, would be Jakarta in Indonesia, where the supply of office space is expected to increase by 14 percent, while Singapore is likely to post an 11-percent office space growth in 2016.
Despite the anticipated rise in office space stock, the Chicago-based property consultancy group still anticipates an upward movement in rental rates in Metro Manila, since 74 percent of the new supply that came in 2015 and 18 percent of those in 2016 had already been “pre-committed.”
Fossick added that another 30 percent of the stock coming in 2016 is currently under negotiation, making almost 50 percent of the 2016 office stock being taken up.
Fossick said the entry of new office stock is likely to slowdown in 2017 and 2018, but there is little to be concerned about because of the high supply coming in 2016.
“The supply that didn’t get taken out in 2016 will be taken out in 2017,” said Fossick.