Megaworld cites resilience of office market amid pandemic

Megaworld leased out 415,000 square meters of office spaces

Overturning the anticipated effects of the coronavirus pandemic, Megaworld reports that it has booked around 415,000 square meters of office leases since the start of the pandemic early last year.

Around 60 percent of these lease contracts booked since last year were renewals while the remaining 40% were new leases, mostly from the information technology (IT) and business process outsourcing (BPO) sectors.

During the first half of this year alone, new leases and renewals were booked in Eastwood City, McKinley Hill, Uptown Bonifacio, The Mactan Newtown in Cebu, Southwoods City in Biñan, Laguna, and Davao Park District in Davao City.

“Around 80 percent of these leases in the first half of the year were renewals. This means, BPO companies opted to stay and held on to their spaces. This also clearly indicates the strength and resilience of the office market within our pioneering townships,” says Kevin Tan, chief strategy officer of Megaworld.

Earlier this year, Megaworld has fully leased its Southwoods Office Towers inside the 561-hectare Southwoods City after an American renewable energy company and a BPO company specializing in customer care solutions took the remaining spaces.

In Davao City, four levels of the Davao Finance Center inside the 11-hectare Davao Park District have also been leased to one of the largest BPO companies in the country during the first half of this year.

“The township model is our advantage. These consistent take-ups of office spaces even in the middle of community lockdowns are not just in Metro Manila but also in key growth centers in the provinces. We are very happy and optimistic about how the office sector has so far been performing better than expected,” explains Tan.

Occupancy rates of Megaworld Premier Offices remain at 90%, with some of its townships reaching 100% such as Iloilo Business Park./

Photo: McKinley Hill

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