US tariffs may boost Philippine office market

US tariffs on Chinese imports could encourage US companies to cut costs by outsourcing non-core functions to countries with cheaper labor, potentially benefiting the Philippine office market.

Property consultancy Colliers Philippines highlights that American manufacturers facing higher production costs due to these tariffs may look to outsource support functions like customer service and human resources to cost-efficient destinations such as the Philippines.

The Philippines remains an attractive destination for US companies due to its skilled workforce and time-zone advantage, allowing round-the-clock operations during US nights.

Despite a 57% drop in office transaction volume in 2024 attributed to election uncertainty, Colliers expects net take-up to increase by 40% quarter-on-quarter based on historical trends.

Colliers recommends enhancing tax incentives through the CREATE MORE Act and expanding high-speed internet through public-private partnerships to sustain the attractiveness of the Philippine office market.

The government should also continue to upskill the BPO workforce to mitigate risks such as geopolitical uncertainty and sudden policy shifts.

Robinsons Land Corp. Senior Vice-President Jericho P. Go emphasized focusing on growth opportunities within the property market rather than external factors beyond control.