Metro Manila office absorption turns around after two straight years of stifled demand

BY JOEY ROI BONDOC
FEBRUARY 2, 2023

Retrieved from: https://www.colliers.com/en-ph/research/colliers-quarterly-property-market-report-office-q4-2022-philippines

Metro Manila office space deals continue to increase despite concerns of rationalized office space requirements from outsourcing companies implementing hybrid work arrangements. Net take up was positive in 2022, after two consecutive years of negative net absorption, indicating that actual take-up is greater than the amount of office space being vacated. New supply in Metro Manila is reverting to pre-POGO levels while demand is still likely to be buoyed by outsourcing companies. Flexible workspaces will likely play a crucial role in tenants’ post-Covid operations.

Colliers sees opportunities especially for flexible workspace operators within and outside Metro Manila. Landlords should also take advantage of healthcare outsourcing firms’ office space requirements particularly those looking for high-quality spaces being offered at a discount. Developers should constantly be in touch with outsourcing firms with requirements outside the capital region.

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