Government agencies are becoming a major source of office demand in Metro Manila's Bay Area, with six public entities seeking a combined total of approximately 85,000 square meters (sq.m.) of office space, according to property consultancy firm Colliers Philippines.

In a statement issued on Monday, the firm said the availability of quality office space at competitive lease rates has positioned the district as a viable option for government agencies looking for sizable, accessible workplaces. Requirements of this scale give the Bay Area a clearly identified demand pool as it works to rebuild occupancy, while broadening the district's tenant base beyond the private sector.

“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,” said Maricris Sarino-Joson, senior director and head of landlord representation at Colliers Philippines.

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 with 23,600 sq.m. and the Center for International Trade Expositions and Missions with 21,000 sq.m. Together, the three largest requirements account for more than nine-tenths of the combined total.

Colliers also identified 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. among the government entities seeking space in the district.

According to Colliers, 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 added that 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.

The 85,000 sq.m. figure reflects stated requirements rather than signed leases, so how much of that demand converts into actual take-up — the driver Colliers links to residential and retail absorption — will be a key marker for the district's post-POGO office market, alongside the pace of the private-sector recovery the firm cites.

The report, authored by Juliana Chloe A. Gonzales, was first published by BusinessWorld Online: Gov't agencies emerge as key Bay Area office tenants — Colliers