Philippine office take-up surged in the last quarter of the year, but were just 38 percent higher than the previous year, Leechiu Property Consultants Inc. said.
Demand year-to-date reached 539,000 square meters, some 38 percent higher than last year’s 389,000 square meters, but way far from 1.7 million office space taken up in 2019.
Office demand levels driven by sustained take-ups from IT-business process management firms would have been higher had it not been for mobility issues brought about by the third quarter lockdowns, according to the company’s CEO David Leechiu.
“Even at the height of the pandemic in 2020, IT-BPMs took up space. We foresee that they will remain a catalyst of the office segment for as long as outsourcing remains a viable solution for recovering firms in the West,” he said.
The Leechiu study projected that for the fourth quarter of the year, take ups from the BPO sector will reach at least 54,000 square meters of office space.
It also projected that total 2021 demand from this category by year-end would register at 229,000 square meters.
“We are pleased to be seeing new brands from among the captives looking to offshore and outsource to the country,” Leechiu said.
Office space demand from the BPO sector has been erratic this year as a result of a series of lockdowns implemented by the government.
Other than BPOs, online retail companies or e-commerce will continue to drive growth and expand both office and industrial requirements, the company said.
It also noted surging demand for industrial and warehousing to meet logistics requirements.
“In all likelihood, most companies will slowly ease back to the business districts while maintaining a portion of their operations on a work-from-home basis, This will give rise to hybrid operations,” it said.
Image credits: Nonie Reyes