According to the latest market insight report released by LPC (Leechiu Property Consultants), the total Philippine office demand as of December 2018 reached another record-high of 1.5 million sqm, with Metro Manila accounting for 73% of 1.16 million sqm; inclusive of pre-commitment transactions done by tenants for future supply. This growth resulted from major demand drivers as stated in the report are increased of urban population growth (projected to rise to 56.3% by 2030 and 66% by 2050); growing number of IT-BPM workers who need to live near their workplace and OFW’s investment in real estate.
LPC predicted that most of Metro Manila districts will be fully developed by 2010 and may see a deficit of office supply by 2022 as key business districts maintain low vacancy rates. In addition, the reports depict office and commercial developments will rollout to nearby districts outside Metro Manila as interconnectivity is enhanced by the Luzon Spine Expressway Network.
Another meaningful forecast has been released by Colliers International, entitled Top 10 forecast for 2019: Flexibility is the name of the game.
Here are five (5) highlights (from Top 10 forecasts) that reflect career insights for 2019 and beyond, according to Colliers:
1. Infrastructure-Led Government Spending to Spur Property
“Colliers believes that property firms will be more aggressive in acquiring parcels of land in Northern and Southern Luzon and ensure that they are strategically positioned, especially in Pampanga, Bulacan, Cavite, Laguna, and Batangas. Developer’s expansion should be supported by the completion of rail, expressway, and toll road projects between 2020 and 2022 that are planned to pass-through these provinces”, it said.
Career insight: The insight supports aggressive expansion of businesses in the areas outside Metro Manila in 2019 and beyond. There will be opportunities for Filipino professionals in provincial areas mentioned above. The top executive search firms in the Philippines such as RGF Executive Search Philippines, have helped several companies from various industries (Industrial, FMCG, IT, and BPO) position professionals and high calibre executives in provincial areas in 2018. The demand for talents in these areas will rise due to company expansion in the coming years.
2. Metro Manila Office Vacancy to Remain at Sub-6%
“Colliers believes that the presence of top technology firms such as Google in Manila proves that the country remains on the radar of large KPO companies”, it said.
Career insight: Opportunity amidst challenge in the global outsourcing space, the Philippine is still a top pick outsourcing destination. There will be steady flow of jobs for outsourcing inside Metro Manila and even in provincial areas.
3. Offshore Gaming to Expand Outside Manila
“These firms have also started to take up office space in key cities outside Manila such as Cebu, Laguna, and Clark in Pampanga. Aside from expansive office space and residential availability, offshore gaming companies need to operate in cities when have airports offering direct flights to China or areas that have direct access to and from Manila. This is one of the reasons why these firms are starting to look at a number of cities in Southern Luzon”, it said.
Career Insight: Behold the rise of POGOs. The increasing popularity of e-gaming and foreign online casino operators gives rise to a promising huge demand of talents in 2019 and beyond. Not to mention, start-up companies. Compliance, Taxation, Project Managers, Bilinguals, and Operations Management will be among the hot career picks.
4. Flexible Workspaces to Grow by 10% Annually
“Coupled with the emergence of a mobile workforce and firms’ drive to bring down operating costs, the tight Metro Manila office market has given rise to another office sub-segment – flexible workspace”, it said.
Career Insight: Flexibility is a game changer indeed. As flexible workspaces rise, we can also observe the influx of occupants of these spaces. A huge demand for IT talents and consulting professionals are coming in 2019. Developers, UI/UX designers, administrators, and IT Leads for start-up businesses are definitely big hit next year. In 2018, IT executive jobs in the Philippines mostly involved IT leads, designers and developers placements for FinTech and IT start-up companies. These executives started working in flexible workspaces for a few months before setting up a dedicated office space.
5. F&B to Further Dominate Retail Absorption
“Colliers believes that the Food and Beverage (F&B) segment will remain the major driver of retail space absorption in Metro Manila. At present, the sector covers 30% to 50% of leasable space in shopping centres across the metro area, one of the highest levels in the Asia Pacific region. We see this being sustained over the next 12 months.”
Career Insight: More international brands entered the Philippine market this year. CNN Philippines reported the coming of brands like Kam’s Roast, Hawker Chan, and M Bakery as well as the highly anticipated arrival of Popeye’s, Panda Express and Shake Shack. This news came with much hope for more opportunities in the Food and Retail market. Top Executive Search Firms and HR Management Consulting Companies in the Philippines are now collaborating with some of these brands in searching for General Managers Commissary Managers, Operations Manager, Marketing Managers and Finance Managers. These are among the hot jobs for F&B in 2019.
- Colliers Outlook – Top 10 Forecast for 2019: Flexibility is the name of the game
- LPC Real Estate Market Insights December 2018
- Manila’s most notable food trends in 2018
About the Author:
Jenny has a strong background in talent acquisition specializing in sourcing, market mapping, end to end recruitment and executive searches for diversified industries. She executes search strategies for different talent demands in Banking, Fintech, Professional Services and Real Estate.