It was truly a month of thanksgiving with the rise in property stock value last November. Colliers International reports that 3Q2019 showed a total of 11.9 million square meters of office space for Metro Manila, with a rise of 3-4% in inventory outside NCR (such as Davao and Metro Cebu).
A POGO Demand
CNN Philippines reported that 72% of office space demands came from POGO firms. By far, Colliers stated that these POGO companies occupied a total of 1.14 million square meters of office spaces in Metro Manila. That’s 10% of the total available office floor space for rent.
Great Expansion, Continuous Growth
It is expected that this streak will continue to improve by at least 6.2% for the next 3 years. POGOs will more likely continue expanding their spaces — leading to more foreign workers migrating to the Philippines, thus increasing demand. The occupation of foreign firms has raised up commercial real estate stock.
A similar incident that is experiencing by Australia this November, thanks to the expansion of American coworking firm WeWork. The demand of office spaces to accommodate the expansion continued all throughout 3Q2019.
Sydney Morning Herald stated that the foreign firm recently occupied 1.5% of office spaces in Australia’s east coast and continues to demand at least 35,000 square meters of office space.
Since 2017, WeWork has gobbled up 45% of Australia’s office spaces, impacting positively on the health of Australia’s commercial space market.
But Until When?
Australia may have a great glut of office space demands from an American firm but what about the Philippines? How long does it take for this streak to end? Will the market stabilize, considering the continuing expansion of POGOs in the country?
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