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On Business Mirror: Completed Office Space in Metro Manila Drops 22% QoQ

Media Coverage

Roderick Abad of Business Mirror, wrote about Pronove Tai International Property Consultants' Q2 Office Market Overview on the July 23rd edition of the business broadsheet. View the writeup here:


Completed office space in Metro Manila drops 22% quarter-on-quarter

By Roderick Abad
PRONOVE Tai International Property Consultants reported the area of new office spaces finished in the second quarter (Q2) of 2018 decreased by 22 percent compared to the previous quarter.

Based on results of the Pronove Tai Midyear Metro Manila Office Market Overview study released last week, about 194,000 square meters (sq m) of workspaces have been completed from April to June this year, adding to the office stocks in the metropolis.

While it marked a 100-percent delivery rate as projected for Q2, the decline in supply in an already tight market led in vacancy rates dropping from 5 percent to 4 percent quarter-on-quarter, the report said.

In general, there was uncertainty within the business sector, Pronove Tai CEO Monique Pronove said.

“We should allay this by ensuring a stable and predictable business environment, as well as by speeding up the implementation of the Ease of Doing Business Act,” she said.

Of this new office supply, 40 percent or 77,000 sq m came from buildings completed in the Bay Area (Pasay City and Parañaque City). This burgeoning coastal business hub has sustained its position as the fastest-growing district at a 10-percent growth in stock after registering no completion from January to March 2018.

Muntinlupa City recorded a notable growth of 8 percent, or 39,000 sq m.

As of June 30, 2018, Makati City remained the largest office center among 11 districts surveyed, accounting for 3.3 million sq m, or 33 percent, of the total 10.2 million-sq-m stock.

Taguig City and Ortigas Center emerged as the second and third biggest areas with new workspaces finished at 2 million sq m and 1.6 million sq m, respectively.

Meanwhile, Mandaluyong City and Quezon City marked vacancy rates of 12 percent and 10 percent, accordingly.

All the other districts posted unhealthy levels of below 5 percent.

For instance, Muntinlupa was at the lowest at 1 percent, Makati City remained tight at 2 percent, and the Bay Area logged in 3 percent.

Established in 2002 by principals with a combined 40 years of experience in the Philippine and Asian real estate, Pronove Tai has been providing its expertise and quality services that include research and consultancy, landlord and tenant representation, property sales and purchasing, and property portfolio management for the past 16 years.

Throughout this time, it has catered to the real-estate needs of government agencies, diplomatic missions, multinational, foreign and local organizations.

To date, the company has had P14 billion worth of transactions in different market sectors, such as office, retail, industrial and petrol with over 1.3 million sq m of leasable space transacted.