Office space devt outside Makati shifts Metro Manila landscape

The share of Makati Central Business District (CBD) in Metro Manila's office spaces substantially declined in the last 10 years, with new developments around the metropolis challenging the financial district’s dominance in the office sector, officials of property consultancy firm Colliers International Philippines said Tuesday.  “As supply grows in other areas, the Makati CBD’s share of the total office space in Metro Manila will decline to 40 percent this year, compared to around 70 percent over a decade ago,” said Julius Guevara, Colliers Philippines associate director for advisory and research. According to Colliers, some 560,000 square meters of new office space will be put up this year—nearly half of which will be in Fort Bonifacio. By 2015, Colliers does not see any new office developments in central Makati. But the property consultant sees some 154,214 sqm being developed in Fort Bonifacio, 51,797 sqm in Alabang, and 274,284 in other locations in Metro Manila. Guevera noted Metro Manila still accounts for some 60 to 70 percent of all office spaces in the country. “Developments in the fringe areas are increasing and companies are looking into expanding outside the Makati CBD,” said Karlo Pobre, research manager for consultancy and valuation services. Pobre noted the outward development of Makati CBD is “being hampered by the surrounding exclusive villages.” Asked if Makati CBD will sustain a substantial share in office spaces, Pobre said, “I don’t think so.” Demand for the office segment, Guevara said, is still mainly fueled by business process outsourcing (BPO) facilities as well as the outsourcing and off-shoring firms.   In terms of new supply of high rise residential developments, Pobre noted Fort Bonifacio will overtake Makati CBD by 2016. Demand for these developments will still come from expatriates who look for  high-end condominiums near or within business centers, said Guevara. Mid-priced and low-end residences will also be on the upswing as “demand for that is solid because of housing backlog,” he added. — VS, GMA News