Tagged as the "Home of Passionate Minds," Bonifacio Global City has supplanted Makati as the top location for Grade A office spaces, according to Cushman and Wakefield, a global property consultancy.
In a report titled Marketbeat: Office Snapshot Q4 2015, the firm stated, "Majority of the new stock" -- almost 340,000 square meters -- "came from Bonifacio Global City, which has allowed Taguig City to eclipse Makati City in terms of total existing Grade A office space." Metro Manila's office spaces reached a total of 4.9 million square meters, thanks to this new addition.
"In the next 12 months, we may see slower rental growth, as upcoming supply may put downward pressure on rents," stated manager for research and consultancy Janlo de los Reyes.
As per the report, Metro Manila's average vacancy rate increased from 1.5 percent during the third quarter to 3.4 percent during the fourth quarter.
According to de los Reyes, the rise in vacancy was "due to large increases in office stock, although healthy demand—particularly from business process outsourcing (BPO) firms may keep vacancy within single digits."
With the BPO industry going strong, the firm states that "demand for office space nonetheless remained solid."