Property consultants say: office space supply to hit new record high

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MANILA – Property consultancy firm Colliers International Philippines said that due to the high demand from the business process outsourcing (BPO) sector, supply of new office space within Metro Manila will grow to a new record-high over the next two years, beginning this year.

Julius Guevara, Colliers International Philippines director, said at a press briefing yesterday that they “expect more than 400,000 square meters (sqm) of new office supply per year starting this year until 2016. It will be reaching all-time highs.”

He detailed that a record-high 481,068 sqm for new office space supply in Metro Manila; beating the record previously set in 2009, in which office space supply reached 476,000 sqm.

Guevara also noted that they expect this year’s figure to further increase to 449,481 sqm in 2015, and to 486,726 sqm in 2016, due to the great demand from the BPO industry

“Most of the supply is absorbed by BPOs. 85 to 90 percent of the supply is taken by them,” he said.

Despite the marked increase on supply of new office space, absorption is not forecast to slow down according to Guevarra.

“Absorption will not slow down. We still have highly educated workforce and low rates compared to other capital cities,” he said.