‘Office vacancy rate in NCR rises in Q2 on hybrid work’

1,037 per sq.m. per month in the same quarter of the previous year.

This, she said, is indicative of the continued recovery of the office market fundamentals.

“Outlook remains that the vacancy figures will improve in the latter half of the year as more companies become comfortable in having their employees return to office, as well as the projected growth of the IT-BPM sector in the country,” Castro said in a statement.

The company said the figure is 74 basis points (bps) higher than the estimated 16.16-percent vacancy rate recorded in the first quarter.

C&W said the latest vacancy rate is also 69 bps higher than the 16.2 percent seen in the second quarter of 2022.

It attributed the increase in office vacancies to the ongoing real estate projects in the National Capital Region (NCR) and the return of office space by some occupiers as more companies engage in the hybrid work system.

Nevertheless, C&W remained bullish despite the increase in overall vacancies because quarterly net absorption was positive with roughly over 36,000 square meters recorded during the period.

Tetet Castro, director and head of the tenant advisory group at C&W, said the average asking rents of prime and grade ‘A’ offices remained steady at P 1,041 per sq.m. per month in the second quarter.

Despite a minor adjustment from the previous quarter’s average rent, Castro said the figure is a 0.21 percent year-on-year increase from the reported average asking rents of P

“Office space rental rates go into a standstill as vacancies continue to exhibit an upward trend attributable to the increase in supply as previously delayed projects are now being gradually completed. Moreover, occupiers review their long-term real estate strategies to become more responsive to post-pandemic work conditions and modes of working,” said Claro Cordero, Director and Head of Research, Consulting & Advisory Services at Cushman & Wakefield.

Despite the lingering market uncertainties and the threat of infla-