Roxas Boulevard is set for another notable tower after the Philippine Economic Zone Authority (PEZA) showed off plans to construct a 33-story building along the famed throughfare in Metro Manila. It will be constructed on a 5,000-square meter land plot held by the organization.
The site is also home to PEZA’s own 13-story office building which is under construction and set to be completed in 2024. That project cost roughly PHP1.5 billion.
Work on the 33-story commercial tower could begin as soon as this year. PEZA Director General Charito Plaza explained to the Philippine News Agency that it is currently speaking to three groups about constructing the project.
“We are preparing the TOR (terms of reference) so we can award the bid and start the construction this year, but not before the end of the Duterte administration,” Plaza noted.
With PEZA not receiving any funds from the government, the commercial tower allows it to monetize land under its holdings. Proceeds could also potentially contributing to its remittance of dividends to the Bureau of the Treasury.
Colliers predicts a Philippine office market turnaround in 2022
While PEZA’s recently announced commercial project is still years away from completion, the Philippine office market as a whole looks to be turning a corner after nearly two years. Colliers predicted a turnaround for segment would likely happen in 2022 as part of the country’s expected economic recovery.
“The office, residential, retail and industrial sectors will benefit from a macroeconomic rebound. Landlords should prepare to capture pent-up demand while tenants and investors should maximize opportunities as the market is on its way to recovery,” Joey Roi Bondoc, Colliers Associate Director and Head of Research, said. “Improvement in business sentiment in the next 12 months complemented by greater vaccination rates will likely lead to potential rebound in office space absorption in 2022.”
