Colliers data show Cebu, Pampanga, Iloilo, and Bacolod struggling with vacancy rates ranging from 20 to 40 percent, while Metro Manila sits at nearly 20 percent.
In sharp contrast, Davao’s office vacancy is just 5.5 percent, the lowest among key hubs outside the capital region.
“It has the lowest office vacancy among key localities outside Metro Manila,” Joey Bondoc, Colliers Philippines director for research, told InsiderPH.
He said Davao’s low office availability makes it “essentially a landlord’s market.”
According to Bondoc, this was also due to limited supply and strong take-up driven by major business process outsourcing firms such as Alorica, Teleperformance, and Concentrix.
Much of the country’s office stock is concentrated in Metro Manila, which had over 14.5 million square meters of space by the end of 2024.
Davao’s tier 1 office stock amounted to 379,000 square meters, of which only 21,000 sqm remain vacant.
This compares to the three largest markets outside Manila: Metro Cebu with 1.5 million sqm of office space and 253,000 sqm in vacancies, Pampanga with 538,000 sqm of space and 105,000 sqm in vacancies, and Iloilo with 372,000 sqm of space and 115,000 sqm in vacancies.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
