Santos Knight Frank Expects More Office Space in Metro Manila for 2018
Santos Knight Frank expects the business process outsourcing (BPO) industry to fuel most of the demand for new leasable office space in the Philippines for 2018.
Morgan McGilvray, Santos Knight Frank senior director for Occupier Services and Commercial Agency, said that property developers would add more than 1.5 million square meters of space this year. This would represent a 25% increase compared to over 1.2 million square meters in 2016.
Australia and the U.S. will continue to be the largest markets for the Philippines’ office property sector, although more Chinese BPO firms will likely set up a regional headquarters in the country, according to Santos Knight Frank chairman and CEO Rick Santos.
While the addition of new office space will drive up vacancy rates, Santos believes that the number of pre-leasing deals will offset the projected increase. Based on a Colliers International Philippines report, the growing popularity of flexible office spaces could also help in maintaining steady occupancy in properties.
Real Estate Trends
Colliers’ Top 10 Predictions For 2018 report showed that the volume of flexible offices space in the Philippines would increase in the medium term. This trend will stem from shifting market demand among different tenants. Other trends for this year include more townships outside Metro Manila, as developers scout for new opportunities in Cavite and other nearby provinces.
This will occur partly because of the popularity of mixed-use developments such as Lancaster New City properties. A review website will help you compare prices if you intend to buy a house or market a new development in the near future.
The influx of investors in the Philippines’ commercial and residential property market, along with developers’ expansion plans, will likely keep real estate agents busy this year. How do you plan to market new projects in the coming months?