COLLIERS ANNUAL OFFICE | DAVAO | RESEARCH | 2019 | 22 MAY 2020 Joey Roi Bondoc DAVAO POST-PANDEMIC OFFICE RECOVERY Senior Manager | Research | Philippines +63 2 8858 9057 Occupiers and developers seize opportunities amid a lukewarm office market
[email protected] Insights & 2020–22 Andrew Gomez Recommendations End 2019 Full Year 2020 Annual Average Director | Office Services | Philippines +63 2 8863 4103 Davao City is one of the most > Colliers believes that demand from both
[email protected] competitive outsourcing from traditional † and outsourcing firms will destinations in the Philippines, prop up office absorption as the market and one of only three Philippine Demand sentiment improves towards Q1 2021. 44,500 sq m 21,000 sq m 13,900 sq m cities that are in Tholons’ Top 100 global sites1 for outsourcing. Maricris Sarino > We project about 53,200 sq metres (572,400 Director | Office Services | Philippines However, the COVID-19 sqfeet) of new office space in 2020. While +63 2 8858 9015 pandemic will likely lead to we expect completion delays of up to two
[email protected] quarters, we project 2020’s pipeline will still slower office leasing all over the Supply 4,300 sqm 53,200 sq m 17,700 sq m be completed this year. Philippines, including Davao City. Despite the challenges, Colliers Annual Average YOY/ YOY / sees office leasing opportunities Growth 2019–22 / End 2019 End 2020 for urban hubs outside of Metro End 2022 Manila including Davao especially > In 2020, Colliers sees a 10% decline in office 2.6% -10% -2% when market sentiment starts rents due to slower leasing.