The demand for green, healthy and sustainable office spaces will significantly increase over the next three years, according to real estate consultancy firm Colliers Philippines.
Colliers Philippines said in a recent report sustainable office buildings would play a key role in shaping Metro Manila’s office market and that landlords would have to respond to this demand.
The demand for green buildings is primarily coming from multinational companies and large Filipino businesses focused on sustainability.
Colliers Philippines estimated that as of end September 2024, about 2.6 million square meters of office space remained vacant in Metro Manila.
It would likely take five years for this space to be filled as office vacancy rate in Metro Manila reached 20.5 percent in 2024, a record high.
Despite this trend, green and sustainable office spaces are expected to dominate new office supply in the region from 2025 to 2027, it said.
It said about 61 percent of the new office supply from 2025 to 2027 would be green-certified. Some 1.2 million square meters of new office space would be completed during this period, with around 722,000 square meters receiving green building certifications.
In the first nine months of 2024, nearly half of all office transactions in Metro Manila were in green-certified buildings.
To attract more tenants, landlords should focus on offering safe and healthy office spaces. Colliers Philippines said landlords should also highlight their buildings’ amenities and value-added features to encourage employees to return to the office.
It said developers should consider differentiating their properties by adding green and sustainable features including lower density ratios, curtain wall systems with thermal insulation, touchless access in elevators, vertical gardens, UV disinfection lifts, and filtered air circulation systems to create healthy, efficient workplaces for traditional and outsourcing occupiers.
Green-certified spaces
As more employees return to office, Colliers Philippines recommends that landlords offer spaces in buildings that prioritize health and well-being. This may include buildings with certifications like LEED, BERDE or WELL.
The majority of these new green buildings will rise in Makati fringes, Ortigas fringes and Quezon City. These include Innoland Altaire, Araneta Cyberpark Tower 3, SM North EDSA Towers 4 & 5, GBF Center Tower 2 and The Yuchengco Center.
Green certifications
Developers should also consider pursuing green building certifications such as LEED or BERDE for their residential projects.
For instance, DMCI Homes plans to secure green certifications for its upcoming Fortis Residences project. Arthaland will also launch six mid-rise condominium buildings at its Sevina Park township in Laguna, which is the country’s first residential community to achieve LEED.
“Colliers believes that incorporating green and sustainable features will be important for future-proofing residential projects,” it said.
