GOVERNMENT AGENCIES are emerging as a significant source of office space demand in Metro Manila’s Bay Area, with six public entities accounting for approximately 85,000 square meters (sq.m.) of office space, according to property consultancy firm Colliers Philippines.
In a statement on Monday, Colliers said the availability of quality office space at competitive lease rates has made the district an option for government agencies seeking sizable and accessible workplaces.
“Government agencies are becoming an increasingly important source of demand in the Bay Area office market. Their space requirements help support occupancy, enhance market stability, and reinforce the district’s appeal as a strategic business location,” Colliers Philippines Senior Director and Head of Landlord Representation Maricris Sarino-Joson said.
The Department of Foreign Affairs accounts for the largest reported office space requirement at 36,000 sq.m., followed by the National Bureau of Investigation at 23,600 sq.m. and the Center for International Trade Expositions and Missions at 21,000 sq.m.
Other government entities identified by Colliers include the Commission on Overseas Filipinos with 2,300 sq.m., the Tourism Promotions Board with 2,100 sq.m., and the Aurora Pacific Economic Zone and Freeport Authority with 300 sq.m.
Colliers said government office demand, alongside improving private-sector leasing activity, could support the Bay Area’s recovery following the exit of Philippine offshore gaming operators (POGOs).
“Together with recovering private-sector leasing, public-sector demand should sustain the Bay Area’s growth going forward,” Ms. Sarino-Joson said.
Colliers Philippines Director and Head of Research Joey Roi Bondoc said increased government office leasing could also influence demand for other property segments in the district.
“In our view, ramped up office space take-up in the Bay Area should positively influence absorption of residential and retail spaces in the business hub. This is important to ensure a sustained recovery of the Bay Area post-POGO,” Mr. Bondoc said. — Juliana Chloe A. Gonzales