The local office market slowed down in the second quarter, after several business process outsourcing companies halted expansion plans, according to Pronove Tai International Property Consultants.
The slowdown was traced to uncertainties in securing accreditation from the Philippine Economic Zone Authority.
“It’s push and pull, and it is creating a sense of uncertainty, which the business sector does not want to see. If we can have something that’s very straightforward, and we know at least we can make our five-year plan, and nothing’s going to change, that’s a lot better for business,” Pronove Tai chief executive Monique Cornelio-Pronove said.
Data provided by Pronove Tai showed that office take-up in Metro Manila dropped by 22 percent to 214,000 square meters in the second quarter from 262,000 sq. m. in the first quarter.
Mandaluyong City and Quezon City had the highest recorded vacancy at 12 percent and 10 percent respectively.
Pronove said the information technology-business process management sector dropped from being the top driver of demand for office space in the first quarter to being second to traditional offices. The sector recorded a 50-percent decrease in demand from 135,000 sqm in the first quarter to 69,000 sqm in the second quarter.
“There was a general atmosphere of uncertainty within the business sector. 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,” Pronove said.