Office market seen to add 350,000 sqm in 2022

Office space take-up is expected to register a net take-up of 350,000 square meters this year, following a positive performance in the first quarter.

This is based on the Metro Manila Office Market report of Colliers Philippines.

Data from Colliers show that the industry recorded a net take-up of 260,000 sqm in the first quarter, following seven consecutive quarters of negative performance, as more companies brought back their employees to offices.

In 2021, the office space market had a negative net take-up of 274,000 sqm, according to Colliers.

Many BPO companies asked most of their employees to return to offices this year, after the government lifted the incentives on work-from-home arrangments.  BPO companies enjoy tax and fiscal incentives from the Philippine Economic Zone Authority as locators in registered IT buildings and economic zones.

In a paper, Colliers said despite the challenges and uncertainties brought about the pandemic, there were plenty of opportunities around to be maximized.

"So, when we were tallying the results of the first quarter performance of the office market, we were so glad to see that the office market occupancy has stabilized as Colliers recorded the net take-up to be positive," the Colliers paper noted.