Hybrid work to affect office leasing activity

JLL Philippines, a leading real estate services firm, has forecasted that hybrid and flexible work arrangements will impact office leasing activity in the country. According to Lizanne Tan, JLL Philippines' head of office leasing advisory, hybrid work is now a non-negotiable element of the workplace ecosystem, and office locations that offer a live-work-socialize environment will be preferred. Additionally, tenants will prioritize markets with a strong talent pool.

Despite headwinds, the office leasing market in the Philippines has been relatively stable. In 2022, gross leasing volumes in Metro Manila stood at 669,000 square meters, a 67% increase from 2021. Leasing activities in Metro Cebu have also been sustained quarter on quarter.

The demand from corporates has outstripped the offshoring and outsourcing demand in Metro Manila, with media and banking occupiers leading most of the corporate demand. On the other hand, in Metro Cebu, offshoring and outsourcing continued to lead transactions, followed by flexible workspace.

JLL Philippines also noted that the vacancy rate in Metro Manila increased in 2022, while the vacancy rate in Metro Cebu declined to 17.8%. According to Janlo de los Reyes, JLL Philippines' head of research and strategic consulting, there is also supply pressure from incoming stock across sectors in both Metro Manila and Metro Cebu. The Metro Manila office sector is anticipating 1.2 million square meters of incoming stock until 2025, while Metro Cebu expects an additional 194,700 square meters.


Real estate is no longer just Location, Location, Location. 
Now, it’s about Location, Information…and Timing! 

- Alejandro Manalac, Executive Publisher

View all posts

Leave a Comment

Subscribe to our Newsletter for Free!

Subscribe to our newsletter to receive the latest real estate news.