With the supply of Metro Manila office space nearing its limits, the Alabang and Bay Area is now being considered as new office space location to be sought after 2018.
According to Chief Executive Officer David Leechiu of Leechiu Property Consultants (LPC), the demand will eventually shift to other locations because very little land will be left in the Metro.
From the 1960s to September 2016, the supply of Metro Manila office spaceis 8.6 million square meters. An additional 4.2 million square meters of office space is now in the pipeline, Leechiu revealed.
“In core Metro Manila, land has been exhausted, the tenants will have no choice but to go to Filinvest and the Bay. That’s why we think the Bay Area and Alabang will have dramatic changes in the next six, seven, eight years,” Leechiu said.
Meanwhile, he cited data from the the IT and Business Process Association of the Philipppines(IBPAP), which noted that the 1.3 million Full Time Employees(FTEs) working for BPO companies is seen to double to 2.6 million in the next six years.
“We are building just enough office space in the next six years,”Leechiu said.
LPC noted that for the first nine months of 2016, a total of 600,000 square meters of office space has already been taken up, 63 percent of which were leased by BPO companies.
In contrast, a total of 577,000 square meters of office space was absorbed by the market for the entire 2015 with BPO companies accounting for 66 percent of the leased spaces.
Leechiu noted that net take up for office spaces has consistently grown in the last 15 years straight, with the 600,000 square meter take up for the first nine months alone of 2016 hitting a new record.