February 18, 2020 | 12:04 am [ bworldonline.com ]
OCCUPANCY rates in Manila for premium office locations are among the lowest across the globe, a recent report by Jones Lang LaSalle (JLL) found.
In its Premium Office Rent Tracker report published last month, the real estate consultancy firm ranked Manila the 66th in its review of 86 markets for the cost of rent for premium office spaces.
It said total occupancy cost in Manila is at $54 (about P2,731) per square foot (sq. f.) per year, making it the third most affordable among the Southeast Asian cities covered by the report.
The others are Malaysia’s Kuala Lumpur at $30 per sq. f. per year; Thailand’s Bangkok at $46 per sq. f. per year; Indonesia’s Jakarta at $60 per sq. f. per year; Vietnam’s Ho Chi Minh City at $78 per sq. f. per year; and Singapore at $117 per sq. f. per year.
“Manila continues to enjoy stable demand and growth in the office sector and we think this positive trend will continue to flourish in the coming years as we see more investment in infrastructure and quality office space,” JLL Philippines’ Head of Commercial Leasing Lizanne H. Tan said in a statement.
The report said affordability is still a consideration for companies in office hunting, and it encourages corporate occupiers to look for alternatives.
“Affordability continues to be a concern, particularly in the top-tier cities like Hong Kong, New York and London…. More affordable cities are also attracting greater corporate interest, such as Helsinki, Montreal, Denver and Manila,” it said.
Hong Kong, New York and London are all in the top five markets with the highest premium office rent across the globe, where Hong Kong leads the entire list with an annual occupancy cost of $313 per sq. f.
In the Philippines, office demand come from the information technology-business process management (IT-BPM) sector and corporate occupiers, particularly in the prime locations of Makati City and Taguig City.
These two cities, JLL Philippines said, are the top locations in terms of average annual rent at $431 (about P21,800) per square meter and $463 (about P23,418) per square meter, respectively.
“The presence of quality grade stock, strategic location, infrastructure accessibility, and talent agglomeration serve as key advantages of these districts,” it said.
Across the globe, technology firms are seen to drive up demand for premium office spaces, joined by companies in the banking and financial services sector.
“While optimal experience is by necessity specific to organizations and locations, experience levers include access to spaces for employees across a range of activities, which will be essential ingredients of premium office space going forward,” the report said.
“Sustainability and corporate responsibility are rising on corporate and personal agendas, so green features and services — from access to greenery to minimizing resource utilisation — are increasingly important,” it added. — Denise A. Valdez
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