PHILIPPINE office landlords face a more challenging second half as weak demand and aging buildings weigh on the market, while industrial and provincial retail properties offer developers better investment opportunities, BusinessWorld reported, citing CBRE Philippines.
The commercial real estate services firm said the office market would need more than 500,000 square meters of take-up in the second half to match last year's performance, a target that appears unlikely given current leasing activity. Vacancy rates are expected to rise further as new supply enters the market.
In contrast, the industrial sector continues to benefit from strong demand from logistics and e-commerce firms, while provincial retail is seeing renewed investor interest. CBRE noted that developers should pivot toward these segments to sustain growth amid the office downturn.