Demand for office space to further rise
Credit to Author: YUGEL LOSORATA| Date: Sat, 16 Nov 2019 16:15:37 +0000
THE notion that office spaces are no longer necessary because people can now work from home or in coffee shops may be a myth, as various studies show that demand for them continues to rise into the next decade, fueled in great part by business process outsourcing and offshore gaming firms.
Vice President for Business Development Cholo Florencio (third from left) at the conclusion of the Coffee Break
@ Great Work event on October 29. Also in photo are Glaicia Espaldon (far left), assistant manager for Prime
Philippines’ Commercial Property Investments Division, and Ruth Coyoca, Prime’s head of planning and operations.
This was what Prime Philippines Assistant Vice President Cholo Florencio revealed during the latest in the Prime Philippines Coffee Break series of events on October 29 at Great Work Studio, one of the newest co-working spaces in Quezon City.
“Such demand is expected to grow further in 2020, and that’s mainly driven by outsourcing and offshore gaming companies,” Florencio said. “This growing demand would be supported by [an expected] 2.15 million square meters [of] additional office spaces until 2020.”
This, he added, is hastened by opportunities that continue to emerge with all the “exciting happenings,” as described by players in the country’s real estate industry.
The finding is part of the premier advisory group’s quarterly industry report, for which it stages the event for the exclusive benefit of its valued stakeholders and investors.
Citing the report, Florencio said “the overall vacancy rate of 4.2 percent from the existing 8 million sqm. grade B and A office supply” as of the third quarter of this year indicated “increasing demand for office spaces, particularly in major central business districts in Metro Manila.”
“Typical per-square-meter office space rental” in such districts range “P750 to PP,400 as of [the] third quarter of 2019,” he added.
The report said “around 17 percent of the total volume occupied by office locators come from the POGO (Philippine offshore gaming operators) industry, with Quezon City and BGC (Bonifacio Global City) [in Taguig City] as the most non-reliant on this industry in terms of office space demand.”
It also said 62,000 mid-to-upscale condominium units are expected to further boost the booming residential condominium sector in the capital, driven in part by POGOs.
Also during the event, Christian Cambaya, head of the investor and servicing unit of the Davao City Investment and Promotion Center, talked about why it was worthwhile to invest in Davao City; Clark Development Corp.’s Senior Investment Promotions Specialist Rodel Poy Lorenzo discussed the latest developments in Clark Global City; and entrepreneur and business anchor Michael Victor Alimurung talked about plans and developments in that budding business hub.