Office market supply seen to grow by 40% in next five years

The Philippine office market is seen to grow by 40% in the next five years, pushed up by the need of information technology- business process management (IT-BPM) to expand in the country.

Data released by real estate services firm Leechiu Property Consultants showed that 4.5 million square meters of office spaces are in the pipeline from 2018 to 2023. Of this, 71% or 3.2 million sq.m. are being constructed in Metro Manila, while the 29% or 1.3 million sq.m are in provincial areas.

This will be added to the current supply of 11.5 million sq.m across the country, 86% of which come from Metro Manila and 14% from the provinces.

“BPM players already invested in the Philippines will continue to dominate the Metro Manila office sector…in the meantime, they are also expanding to provincial locations such as Clark in Pampanga, Cavite, Batangas, Laguna, and notably, Cebu City,” LPC Chief Executive Officer David Leechiu said. — Arra B. Francia