Property consultancy JLL Philippines said Thursday that despite headwinds, the office leasing market was relatively stable in 2022.
JLL said in its latest report gross leasing volumes in Metro Manila reached 669,000 square meters in 2022, or 67 percent higher than the 2021 total of 401,000 sq. m. Leasing activities in Metro Cebu were also sustained despite headwinds, with 43,664 sq. m. in the fourth quarter, up from 41,853 sq. m. in the third quarter.
Metro Manila’s office vacancy rose behind weaker leasing demand and new supply, resulting in soft rents. In Metro Cebu, vacancy declined to 17.8 percent.
“There is also supply pressure from incoming stock across sectors in Metro Manila and Metro Cebu,” said JLL Philippines head of research and strategic consulting Janlo de los Reyes. He said around 1.2 million sq. m. of new stock is expected in Metro Manila until 2025, while Metro Cebu may see an additional 194,700 sq. m. Othel B. Campos