PH office market third strongest globally

THE Philippine office market is the third strongest globally with an occupancy rate of 80 percent in the first half of 2024, real estate consultancy firm Prime Philippines said in its 2024 mid-year property report.

Its robust performance was driven mainly by the vigorous business process outsourcing (BPO) industry, which reported an annual growth of 7 to 8 percent, further boosted by the strong demand from government agencies and the expanding flexible workspace sector.

Prime Philippines Executive Vice President Cholo Florencio said that the Philippine office occupancy rate follows India, with an occupancy rate of 85 percent, and Singapore at the top with 88 percent.

(From left) Cholo Florencio, executive vice president, Prime Philippines; Ruth Coyoca, AVP Property Advisory VisMin Prime Philippines; Celeste Ilagan, COO, IT & Business Process Association of the Philippines or Ibpap; Romel Dellosa, AVP-Capital Markets & Investments, Prime Philippines; and Jojo Romarx Salas, head of Research and Advisory, Prime Philippines. CONTRIBUTED PHOTO

The Philippines is also way ahead of the US and Europe, which reported occupancy rates of 62 percent and 60 percent, respectively. Meanwhile, the worldwide average occupancy rate is 79 percent.

Florencio said the country office market's high occupancy rate «emphasizes the Philippines as a very competitive player in the region, offering significant opportunities to local and international businesses.»

For 1H 2024, the total supply of office spaces in Metro Manila stands at 13.5 million, with an occupancy rate of 84.2 percent. In terms of lease rates, the overall average rent for Metro Manila is comparable to pre-pandemic rates, averaging P975 per square meter (sqm).

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Within Metro Manila, most central business districts (CBDs) garnered an occupancy rate of 85-89 percent. As expected, Makati CBD, with a total of 3.5 million sqm of office space, had the highest occupancy rate at 87.9 percent.

The Bonifacio Global City (BGC), with 2.8 million sqm office space, followed closely at 86.5 percent occupancy rate. Quezon City, with 2.05 million sqm office space, and Ortigas CBD, with 2.9 million sqm office space, were neck and