Colliers Flash | Multi-sector | Manila | 23 June 2021

Capturing Post-Covid Gains

Survey results show tenants and landlords seizing opportunities beyond Covid disruptions

Insights & recommendations

Our survey, conducted during the
Colliers Q1 2021 Metro Manila Property
Market Presentation reveal occupiers are
expanding outside of Metro Manila,
providing an opportunity beyond 2021
for office developers in the provinces. We
recommend developers landbank in
strategic locations such as Pampanga.
Retailers and mall operators are
aggressively expanding their online
presence. We recommend they be quick
in capturing new trends in the market
influenced by a lockdown and a
household consumption-driven economy
including repositing assets to logistics
use to support rapid, last-mile deliveries.
Meanwhile, Colliers has observed that
investors continue to acquire house and
lot and lot only projects in key urban
areas outside Metro Manila. We
recommend that developers continue to
implement strategic landbanking and
follow the national government’s massive
infrastructure implementation program1 .
Retail
Survey question: Are you willing to pay a
premium for a subscription-based delivery
program where all your orders will be delivered
on the same day? (e.g. Amazon Prime)
Yes No
64% 36%
Colliers believes that maximizing technology and online
platforms will likely remain crucial for retailers to fulfill
last mile and same day deliveries. This should be
complemented by retailers and mall operators’
partnerships with delivery platforms.
In our view, the retail segment will likely continue to see
disruption as Filipinos continue to shop online and focus
spending on essential items such as food and beverages.
Colliers believes that the currently still strict quarantine
protocols are among the factors pushing consumers to
prefer subscription-based delivery programs. Colliers
believes that online shopping will likely continue to
thrive even post-Covid.
Residential
Survey question: What type of property will you be
investing in in the next 12 months?
Condominiums 26% 44% Lot only
House & Lot 30%
In our view, the Covid-19 has raised the demand for
horizontal projects outside of Metro Manila. The shift is
partly attributable to the completion of infrastructure
projects such as toll roads that improve connectivity
between Metro Manila and key urban areas in northern and
southern Luzon.
Colliers believes that remittances from Filipinos working
abroad, which reached USD33.2 billion (PHP1.6 trillion) in
2020 from USD33.5 billion (PHP1.6 trillion) in 2019, despite
the global economic crunch, will likely be the major driver for
horizontal projects. We encourage developers to be more
strategic with their landbanking strategies and explore pent
up demand beyond 2021.

Note: 1 sq m = 10.76 sq ft. USD1 = PHP48 as of the end of Q1 2021. Traditional occupiers includes companies in various sectors such as legal, engineering and construction, government
agencies and flexible workspace operators. 1Results cover 381 respondents out of 693 attendees during the Colliers Q1 2021 Philippine Property Market Briefing.1Colliers Flash Report,
Paving the road to property growth.
C ollie rs Fla sh Multi-s e ctor | Ma nila | 23 June 2021

Office Q1 2021 Provincial Office Transactions

Survey question: Which of the following locations outside of Metro Manila Iloilo and Cebu covered 77% of total provincial
will you choose for your post-pandemic plans? transactions in Q1 2021.

Total provincial
Pampanga 32% transactions
Pampanga
Laguna 29% 30K sqm
14% 0.8K sqm
Cebu
11%
Iloilo

Bulacan
7%
Batangas
4%
Davao
6K sqm
Bacolod 2%

About 75% of respondents chose Pampanga, Laguna, and

Cebu for their post-Covid leasing plans.
Iloilo
In our view, this provides an opportunity for provincial
developers looking to tap pent up demand for office 14K sqm
space beyond 2021. We recommend that developers
further explore opportunities to build office towers in
these areas.
Cebu
Colliers has noted that outsourcing firms continue to
occupy office spaces outside Metro Manila. Among the 9K sqm
firms that took up office space in Q1 2021 were Legato
and Teledirect in Iloilo, 24/7 InTouch in Cebu and TaskUs
in Batangas. Given the government’s plan to lure more
companies to occupy space outside the capital region, we
see more firms locating outside of Metro Manila as they
take advantage of tax and non-tax incentives offered by
the government.
Source: Colliers Source: Colliers
2
Primary Author: For further information, please contact:

Joey Bondoc Richard Raymundo

Associate Director | Research | Managing Director | Philippines
Philippines +63 2 8858 9028
+63 2 8858 9057 Richard.Raymundo@colliers.com
Joey.Bondoc@colliers.com

Contributors:
Martin Aguila
Research Analyst | Research | Philippines
+63 2 8863 4116
Martin.Aguila@colliers.com

Alexis Florentino
Research Analyst | Research | Philippines
+63 2 8863 4186
Alexis.Florentino@colliers.com

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