Leechiu Property Consultants (LPC) said office property demand for 2022 reached 975,000 square meters (sq.m.) exceeding last year’s 389,000 sq.m.
Takeup also exceeded the combined 929,000 sq.m. takeup in the pandemic years of 2020 and 2021.
“The IT-BPM (information technology-business process management) sector accounted for the lion’s share of 2022 takup at 466,000 sq.m. Traditional office occupiers registered a substantial takeup of 448,000 sq.m.,” LPC said.
LPC added office demand peaked in the third quarter to 313,000 sq.m. from just 124,000 sq.m. in the first quarter.
“Takeup leveled off in the fourth quarter to 283,000 sq.m.,” said said David Leechiu, LPC chief executive officer.
Leechiu said the growth is likely to continue next year “given a notable live requirement of 352,000 sq.m.”
“Up to mid-2022, it was difficult to visualize year-end demand hitting close to the 1 million sq.m. mark. The results have exceeded expectations but we can’t put our guard down just yet,” he said.
Leechiu said the sustained demand for office spaces is tempered by significant vacancies in some business districts and additional supply from new buildings to be completed next year.
“The latter are mostly projects started in the heady pre-COVID days of 2019 and coming on stream only now following construction and other delays. We thus will start the new year cautiously optimistic about the prospects of the real estate industry in the next 12 months,” he said.
Leechiu said of the 2022 office demand, Metro Manila accounted for 724,000 sq.m., around 74 percent of total, while the Bonifacio Global City took up 232,000 sq.m., and the Makati central business district at 198,000 sq.m.
Leechiu said the remaining 26 percent represents transactions outside Metro Manila with Cebu City cornering 92,000 sq.m., Davao at 50,000 sq.m., and Clark at 49,000 sq.m.
Mikko Barranda, LPC director for commercial leasing, said that the IT-BPM sector will continue to drive the growth in office demands in the years to come.
“ Because IT-BPM industry studies estimate that 1.1 million more full-time employees will be hired in the next six years. This could mean, at the least, an additional annual 476,000 sq.m. of office space requirement up to 2028,” he said.
