An uptick activity in the Metro Manila office market is being driven by changing needs from tenants as well as their desire to secure discounted rents while they are still available. Research from Colliers International Philippines found that office transactions increase by 72 percent when comparing this year to 2021. This comes on the heels of two years of negative take up.
With employees returning to the office in Metro Manila, many businesses are using this time as an opportunity to secure new space at discounted rates. New buildings have been trying to attract tenants through cheaper rents with the consultancy noting that recently completed supply will keep driving down prices in the near term.
However, there is another reason for the increase in Metro Manila office market take up. Many companies are also searching for spaces which are safer, healthier and are less harmful to the environment in order to entice workers to return and meet their own Environmental, Social and Governance (ESG) standards.
“ESG parameters are quickly becoming part of standard tenant requirements. We encourage building owners and investors to assess how to comply with green building certification requirements for their current and pipeline building portfolios,” Kevin Jara Associate Director, Colliers International Philippines Office Services-Tenant Representation, noted.
Related: What should you look for in a Metro Manila prime office space?
What will the future of the office be?
CBRE Asia Pacific believes the office isn’t going away, but it’s role will change dramatically in the coming months and years. The future of the office is dependent on employees. This means employers must be willing to utilize hybrid solutions while ensuring the workplace itself offers rich in-person experiences that remote working cannot provide.
“With the pandemic having led many companies to incorporate increased levels of remote working into their current preferred workplace models to create a hybrid working approach, occupiers must now enhance their workplaces to deliver the type of seamless and engaging experiences that remote working cannot,” a recent CBRE report noted. “CBRE believes the creation of places where people work must be founded on understanding the changing nature of work in a hybrid world, what motivates people to come together, and a deep understanding of how to create experiences that really matter.”
