According to economist Andrew Marasigan: “Out of the 2.88 million sqm [Grade A and B office spaces] under construction, 28% is already pre-leased or pre-sold.” As of 2018, he reports a total of 11.01 million square meters (sqm) of Grade A and B offices within Metro Manila and another 2.88 million sqm scheduled to completion by 2023.
The top business and finance district, Makati and neighboring BGC, are expanding their developments into the surrounding regions with prices rising as the prime office location in the country. Ortigas also moves in towards the deeper parts of Pasig and Mandaluyong and had the most projects into building Grade A Offices in 2019, offering the most cost-competitive prices when compared to the rest of its pricier market rivals.
Meanwhile, as demand is growing in the country’s top business centers and developers scramble to provide the prime office real estate supply, the Philippine Economic Zone Authority limited their accreditation for the Metro Manila region in favor of developing other budding business centers in the country. In 2019, only two (2) buildings were accredited by PEZA, one in Makati and another in Iloilo City.
As pre-selling prices start at 180,000 pesos to 270,000 pesos per sqm in Makati and BGC, with Makati having a weighted average lease rate of 1,286 pesos (US$24.68) per sqm, just a little off-south, Alabang (2%) and Las Piñas have set up 192,000 sqm of grade A and B offices under construction.
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