The demand for office spaces in Davao has been averaging by 88% as of the third quarter of 2017, according to real estate service and consultancy firm Prime Philippines.
In a study, Prime Philippines concluded that the current setting of the office space market in Davao makes it an ideal investment spot for office leasing.
“Davao City is highly-skilled labor market, extensive infrastructure network, and its competitive ranking is the key factors that make it a viable investment for office expansion and the office leasing business in proportion,” said Raphil D. Saguan, associate for capital markets and investments.
He added that the developments within the city will increase the demand for office spaces. This rise in the office space and other upcoming key factors will give investors and developers a foothold in the office space industry.
Saguan said that 88% of office spaces in Davao City are occupied by different industries such as the business process outsourcing, professional services, and general servicesfirms.
“Among the commercial districts of Davao City, the Poblacion area has the fastest take up at 95%. The Lanang-Bajada area and the Matina area, on the other hand, have 93% and 77% take-up rates respectively, “he said.
Ruth Coyoca, senior associate for commercial leasing services added that on the average , the prices for the official spaces are pegged at P5655 per square meter in the Poblacion area , gaining a 5.1% increase from last year’s price and P475 per square meter in the Bajada-Lanang and Matina area, gaining 5.56% increase from the last year. The Poblacion area has the most Grade A buildings in the city, causing higher average price per square meter.
Coyoca also explained during the Habi at Kape on Wednesday that Bajada-Lanang strip remains densest with a total inventory of 70,800 sqm, with a high 93% take-up, almost half of the existing inventory are occupied by medium-to large-scale BPO tenants and professional service office tenants.
She also mentioned that some of the large scale tenants and developers already present in Davao City are Robinsons, VXI, Ayala, Alorica and Convergys.
“More than 90% of the occupants in Matina office developments are ICT-BPO tenants particular in the Matina IT Park and Ayala Business Center.” she said.
