Tenant-leaning office market, new condo completions offer broker opportunities

BOTH the office and the residential sectors provide promising opportunities for brokers this year. Top property consultancy firm Colliers noted a recent increase in commercial property inquiries and market transactions, as well as a surge in the number of condominiums completed last year.

The data was presented to the real estate professionals who attended Lamudi’s business networking event, Lamudi Link.

According to Maricris Sarino-Joson, director of Client Services at Colliers, office deals went up from 69,000 square meters to 134,000 square meters, an 18% increase from Q32021 to Q42021.

Since the office landscape is a tenant-leaning market, it’s the perfect time to consolidate offices or relocate, she said. This presents an opportunity for brokers to strengthen marketing efforts on office listings, capturing businesses looking for a new commercial space for expanded or downsized operations.

The consultancy firm projects new supply in Metro Manila to reach 900,000 square meters in 2022. Most of these completions will come from Ortigas, a prime location that saw new infrastructure and green buildings amid the pandemic. More real estate activities can be expected in this business district, contributing to a rise in property values in the next coming months.

In terms of the existing supply, there are two million square meters of available office stock overall. Of this, one million square meters of office space registered under the Philippine Economic Zone Authority (PEZA) is available.

“What’s driving the office sector is still BPO [business process outsourcing sector]. Most BPOs still prefer to be in PEZA buildings,” Ms. Sarino-Joson noted.

In 2020, the residential sector experienced significant delays in completion as the country grappled with lockdown restrictions and challenges. But in 2021, Colliers observed that condominium completions were up by 159 percent.

Among real estate hotspots in Metro Manila, Bay Area is the one to watch out for, according to Joey Bondoc, Associate Director at Colliers.

He reported, “[Bay Area] has overtaken Makati CBD in terms of its share of the total condominium supply in the capital region. In fact, it has 30,000 condo units against 28,500 units of Makati CBD.” He noted that the area is a relatively younger business district than Makati.

Aside from Bay Area, Fort Bonifacio has dominated the new completions in Metro Manila.

Colliers projects that both commercial hubs will cover 70% of new projects that will be introduced this year.

Mr. Bondoc also added that the residential property demand will be supported by various factors, including the increase in vaccination rates, strong interest in horizontal projects, and an increase in remittances by four percent this year.

The positive outlook on the office and the residential sector offers excellent business opportunities for real estate professionals. To seize the ready market, Lamudi CEO Kenneth Stern reminded the practitioners who attended the networking event about the importance of a supportive community.

He said, “If you want to go fast, go alone. If you want to go far, go together.”

Anurag Verma, Lamudi’s director of Broker Classifieds & Partnerships, also emphasized the use of proptech in seeing success in the brokerage industry. “[Lamudi] attracts more than two million potential property seekers every month. That generates about 10% conversion into inquiries,” he said.

Mr. Verma emphasized that consistent online visibility helps brokers capture property seekers with unique needs and preferences.