Philippine office demand surged in the last quarter of the year registering year-to-date at 539,000 square meters (sqm), or already 38 percent higher than the 2020 figure of 389,000 sqm, supported by strong fundamentals, according to the latest study by Leechiu Property Consultants (LPC).
Take-up at year-end will surpass projections despite the peaks and dips in demand that characterized the 2021 office arena, it said.
LPC chief executive officer David Leechiu said office demand levels driven by sustained take-ups from information technology-business process management (IT-BPMs) firms would have been higher had it not been for mobility issues brought about by the third-quarter lockdowns.
“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 in the fourth quarter this year, IT-BPMs will take up at least 54,000 sqm. of office space.
It also projected that total 2021 demand from this category by year-end would register at 229,000 sqm.
“We are pleased to be seeing new brands from among the captives looking to offshore and outsource to the country,” Leechiu said.
Other than BPOs, online retail companies or e-commerce will continue to drive growth and expand both office and industrial requirements.
The study also cited surging demand for industrial and warehousing to meet logistics requirements.
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, the study added.