Offices thriving in the Bay
By the end of 2022, the total office stock in the Bay Area is estimated to reach about 1.045 million sqm.
Although by no means is this the biggest stock in Metro Manila, the rapid and strong growth of the office property market in the Bay Area is deemed quite impressive considering that developments in the area began just a little over a decade ago.
Data from KMC Savills Inc. showed that demand for office space in the Bay Area, which straddles across portions of Manila, Parañaque and Pasay, was driven primarily by offshore gaming operators as well as outsourcing companies. In fact, the Philippine offshore gaming operator (Pogo) sector reportedly took up another 76,000 sqm of office space in the Bay Area in 2018 alone, equivalent to almost half of the new supply in this submarket.
Given such a robust demand, vacancies stood at a mere 0.7 percent as of the first quarter of 2019, as there were no building completions for the period. Rental rates in the Bay Area, according to KMC, continued to outperform other submarkets, recording another double-digit growth of 11.6 percent year on year and registered an average rate of P833.7 per sqm a month.
“The tight conditions in the submarket have continuously buoyed rentals since 2018,” it said.
Attractive proposition
Although there are more established business districts that can offer premium Grade A office spaces to locators, there are a number of reasons why many are now drawn to the Bay Area.
In a recent interview, Colliers International Philippines research manager Joey Roi Bondoc noted that many sectors are looking to set up shop in the Bay Area. Apart from Pogos and outsourcing companies, the Bay Area has attracted traditional offices, tech companies and even government agencies.
“We still see vast potential in the Bay Area in terms of office, retail and residential segments. Barring any construction delay, we project the Bay Area’s office stock to exceed 1 million sqm by the end of 2020, four times higher than the business district’s leasable stock in 2016, prior to the influx of offshore gaming firms from China,” Bondoc said.
“Colliers sees faster expansion of leasable office space in the Bay Area as we see the location capturing the demand from Makati CBD, which has been constricted by the lack of developable land,” he added.
Bondoc cited a recent report prepared by Colliers International, which identified the Bay Area as among the most attractive locations in the country for tech companies. Among the key factors contributing to this attractiveness, according to the report, include the Bay Area’s proximity to the airport, proximity to other key central business districts such as Makati, Fort Bonifacio, and Alabang, availability of more Grade A office options, and availability of residential options for the expats.
Choice residential option
True enough, the Bay Area offers a wide array of dining, retail, entertainment and residential options for the discerning market, making it an even more attractive destination for your real estate investments.
Among the first movers here is upscale developer Anchor Land Holdings Inc., which has since been expanding its presence in the Bay Area, bringing with it its expertise in creating premium residential towers. It currently has a number of luxury projects in this emerging business district including Solemare, Monarch Parksuites, and its latest, Copeton Baysuites.
Located between City of Dreams and the upcoming Ayala Mall, the 16-storey Copeton Baysuites is masterplanned to be an ultra-luxurious project, with its three towers to be equipped with sustainable, green features, thus putting a premium on your home.
The highly exclusive enclave offers “cutting-edge building technologies that guarantee maximum safety and convenience of the residents” along with a host of amenities to offer a modern, holistic lifestyle to residents. These include 25-meter lap pools, function halls, mini-theater rooms and karaoke rooms, fitness gyms, outdoor children’s play areas, game rooms, deck seating areas, outdoor lounges, and viewing decks.
Anchor Land president Elizabeth Ventura earlier explained that this tri-tower enclave is the “expansion of our luxury developments in Bay City. It is masterplanned to showcase Anchor Land’s unparalleled commitment to providing handcrafted luxury experience, serving the best interests of our clientele.”
