JLL Philippines, a leading global real estate services firm, reported a significant rise in office space vacancies across Metro Manila in 2024, attributed to the government’s crackdown on Philippine online gaming operations. The number of freed office space last year reached 407,010 square meters, a sharp increase from 334,890 square meters in 2023.
Janlo de los Reyes, head of Research and Consulting at JLL Philippines, said that office pullouts were at an all-time high, notably in areas like Parañaque and Taguig. In Parañaque alone, 19,000 square meters of office space were vacated, largely by online gaming operators, while corporate occupiers in Taguig gave up 1,600 square meters of office space.
The surge in vacancies was most pronounced in key business districts:
- Taguig recorded the highest office pullouts at 90,835 square meters.
- Makati followed closely with 73,980 square meters.
- Bonifacio Global City (BGC) saw 69,800 square meters vacated, while Quezon City had 73,654 square meters.
- The Makati Central Business District (CBD) accounted for 50,319 square meters.
As a result, the overall office vacancy rate in Metro Manila climbed to 19.6 percent, a level maintained almost throughout 2024. This was compounded by the influx of new office units, except in the fourth quarter, when no new supply was introduced to the market.
Metro Manila’s total office stock stood at 11.1 million square meters by year-end. Among the areas with the highest vacancy rates were:
- Makati (17 percent)
- The Makati CBD (13.5 percent)
- Taguig (14.9 percent)
- BGC (9.2 percent)
Despite the rise in vacancies, rental rates continued their downward trend, falling by 2.3 percent by the end of 2024. The average headline rent dropped to P982 per square meter per month in Q4, while transacted rents stood at P878 per square meter.
Looking ahead, de los Reyes forecast a total of 682,023 square meters of fresh office supply in 2025 although this number is expected to drop significantly in the following years—294,809 square meters in 2026, 176,019 square meters in 2027, and 43,066 square meters in 2028.
As Metro Manila’s office real estate market adjusts to the shifting landscape, stakeholders are closely monitoring the long-term effects of the online gaming ban and its impact on commercial property demand.
