Manila's Prime Office Occupancy Cost Third Lowest in Asia-Pacific in Q2, Knight Frank Says
Key Takeaways
- •Manila had the third lowest total prime office occupancy cost in Asia-Pacific in the second quarter.
- •The city's prime office occupancy cost was $27.87 per square foot per year.
- •Prime net headline rent in Manila declined 0.9% year on year and 1.9% quarter on quarter.
- •Knight Frank's Asia-Pacific rental index increased 0.6% quarter on quarter, contrasting with Manila's decline.
- •The low cost position may appeal to outsourcing and offshore services firms considering expansion or relocation.
Manila posted the third lowest total prime office occupancy cost among 24 Asia-Pacific markets in the second quarter, according to real estate consultancy Knight Frank's latest Asia-Pacific Office Highlights report. The metric bundles the annual costs of occupying prime office space, giving corporate occupiers a like-for-like basis for comparing location costs across the region.
The Philippine capital's occupancy cost stood at $27.87 per square foot per year, the report showed.
Manila's prime net headline rent declined by 0.9% year on year and by 1.9% quarter on quarter, even as Knight Frank's rental index for the wider Asia-Pacific region edged up by 0.6% quarter on quarter. The divergence leaves Manila among the region's most affordable prime office markets, a consideration for cost-sensitive occupiers — including the outsourcing and offshore services firms that have long been a major driver of Philippine office demand — when weighing where to locate or expand.
Source: BusinessWorld Online
