Office rents in Metro Manila are projected to decline by an additional 3.2% in 2025, following a 2.8% decrease in 2024, primarily due to an oversupply of vacant office spaces.
As of the third quarter of 2024, the vacancy rate stood at 18.2%, the highest since the second quarter of 2004.
This trend is expected to continue, with the vacancy rate projected to reach 20.5% by the end of the year, influenced by the influx of new office spaces and the departure of Philippine offshore gaming operators (POGOs).
The average headline rent for prime and Grade A office developments in Metro Manila has decreased to P1,003 per square meter per month, down from P1,041 per square meter per month in the same period the previous year.
Industry experts suggest that these market conditions may lead to further adjustments in rental rates and occupancy levels in the coming year.
Source: PhilNews24 | December 26, 2024
