Total office demand reached 966,000 square meters year-to-date, or 88 percent of 2024’s full-year level, signaling a durable rebound and steady absorption across key business districts.
“The first three quarters of 2025 show that the office market continues to hold its ground—as long as demand remains stable and contractions stay manageable,” said Edward Gador, associate director for commercial leasing at Leechiu Property Consultants.
Expert’s view
“What we’re seeing is a more sustained and resilient recovery, driven primarily by the IT-BPM sector and traditional office occupiers,” he added.
Data from Leechiu showed that IT-BPM firms remain the market’s strongest growth anchor, accounting for 45 percent of total demand, followed by traditional occupiers taking up 449,000 square meters.
Government relocations and new entrants such as Philippine Inland Gaming Operators (PIGO) are also contributing to incremental expansion.
Demand hotspots
• Bonifacio Global City (BGC) leads the pack, recording 183,000 square meters of take-up driven by IT-BPM expansions.
• Quezon City and Ortigas–Mandaluyong followed closely with a combined 271,000 square meters, supported by traditional occupiers seeking larger and cost-efficient spaces.
• Makati CBD remained stable, seeing selective growth from tenants focused on value-driven relocations.
• Provincial markets gained momentum, led by Cebu’s IT Park at just 6 percent vacancy, with Davao and Iloilo showing renewed IT-BPM expansion.
Vacancy rate comes down
Overall vacancy across Metro Manila has normalized to 18 percent, down sharply from pandemic peaks.
BGC (9 percent) and Makati (10 percent) remain the tightest and are expected to recover fastest, while Quezon City and Ortigas offer competitive opportunities amid new supply.
Rents in BGC have started inching upward as vacancies tighten, with Makati rates holding steady.
—Edited by Miguel R. Camus
