Office take up hits record high

Office take up in Metro Manila is estimated to close the year at an all-time high of 750,000 square meters, according to Leechiu Property Consultants (LPC).

As of end-November, takeup was at already 728,305 sqm. or 16 percent more than full year 2016’s takeup of 630,000 sqm.

LPC chief executive officer David Leechiu said the exponential growth from the offshore online gaming industry fueled robust office demand and more than made up for a slack from the IT-business process manufacturing industry.

Office space demand from the online gaming sector expanded 306 percent from only 56,700 sqm. in 2016 to 230,102 sqm. as of the end-November, he said.

Online gaming firms took up spaces mostly in Bay City alone, the business districts rising along Manila Bay. Bay City accounted for 67 percent of all online gaming takeup as of last month.

Another sector, the IT-BPM takeup, on the other hand, was 28 percent less at 347,660 sqm. as of November from 485,100 sqm. in 2016.

Meanwhile, vacancy rate across Metro Manila stood at a manageable 6.62 percent.

Moving forward, Leechiu anticipates a “resurgence of the IT-BPM industry” resulting from reaffirmed relations with the US and the bicameral version of the comprehensive tax reform law which is friendly to the IT-BPM industry.

The recent upgrade of the Philippines’ credit rating is likewise a positive development.

He further cited that a number of the world’s largest companies are in the final stages of setting up shared services in the Philippines.

“This serves as reassurance for the rest of the world that all is well in the Philippines,” Leechiu said.