New data from real estate services giant Colliers Philippines showed that Makati CBD vacancies could drop from the current 7.2 percent to 5.5 percent in 2026 before trending lower in 2027 (4 percent) and 2028 (2.6 percent).
For Joey Bondoc, Colliers Philippines director for research, this opens up fresh opportunities for developers to once again add new office space.
At the same time, occupied stock is expected to grow from 3.1 million square meters (sqm) in the first quarter of 2025 to 3.4 million by 2028.
Banking giants appear to be ahead of the game with plans for their Makati CDB headquarters set to be completed over the next few years .
These include BDO Corporate Center and China Bank Makati Tower—both expected to be completed by 2028—and the new headquarters of Bank of the Philippine Islands and Metropolitan Bank & Trust, which are set to be finished in 2029.
According to Bondoc, pre-leasing is coming back in a big way after three years, while office demand reached 238,000 sqm in the first quarter of 2025.
This marked a 15 percent increase from the same period in 2024 and a sharp 66 percent rebound from the fourth quarter of last year, signaling a return of confidence after the uncertainty surrounding the US polls.
Outside of select areas, the Metro Manila office sector remains cautious.
Colliers Philippine data showed vacancy rates easing to 19.7 percent in the first quarter of 2025 from 19.8 percent a year ago.
However, office supply expected this year is projected to push the year-end vacancy to 22 percent.
Behind Makati City’s 7.2 percent vacancy rate is Ortigas Center with 11.9 percent, followed by Fort Bonifacio at 15.9 percent and Quezon City at 21.1 percent.
Areas with the highest vacancies include Alabang (31.6 percent), the Manila Bay Area (41.4 percent), and Makati Fringe (36.4 percent).
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
