Metro Manila’s office space market remained robust and expanded 3.2 percent year-on-year in the second quarter of 2024, amid a surge in new supply, real estate services firm KMC Savills said in its latest report.
KMC Savills said total office space inventory in the National Capital Region reached 9.4 million square meters in the second quarter, up from 9.1 million sq. m. in the same quarter in 2023.
The Bay Area, which emerged as a key growth driver, was on track to surpassing Makati as the second-largest hub for Grade A buildings, it said
KMC Savills said IT-BPM firms remain the leading source of demand at 46 percent, followed by government offices in the Bay Area where office supply reached 1,286,215 sq. m. as of the second quarter.
BGC and Bay Area continued to be hotspots for real estate transactions. BGC attracted IT-BPM companies due to operational efficiency and quality considerations, while the Bay Area experienced a rebound in leasing activity, driven by the influx of government agencies.
Despite the increased supply, BGC’s vacancy rate decreased to 9 percent in the second quarter, while the Bay Area’s vacancy rate also declined to 21.9 percent in the second quarter from 27.9 percent in the first quarter on strong demand and its strategic location.
Rental rates across Metro Manila remained stable, with a slight dip of 0.1 percent from the first quarter of 2024. Ortigas Center’s rates decreased due to older buildings, while Quezon City’s rates surpassed Ortigas Center’s.
