Metro Manila’s office market remains active but is undergoing a strategic recalibration as business process outsourcing (BPO) firms expand into cost-efficient provincial hubs, according to real estate consultancy Colliers.
“As the Philippine real estate market continues to evolve, the BPO sector (Third-party Outsourcing and Shared Services) remains a key driver of growth—reshaping both Metro Manila and emerging provincial hubs,” said Daniel Salapong, senior manager for Landlord Representation under Colliers’ Office Services Team.
Colliers reported 605,000 square meters (sqm) of total office transactions in the first half, with BPO and shared services accounting for 293,000 sqm—nearly matching traditional occupiers at 311,000 sqm. Despite this strong activity, vacancy rates in Metro Manila stood at 20 percent in the first half and are projected to rise to 21.4 percent by year-end, reflecting shifting occupier strategies.
BPO giants remain dominant players in leasing activity. Teleperformance led with 17,500 sqm in Metro Manila, followed by Concentrix with 16,400 sqm and IntouchCX with 14,000 sqm. Outside the capital, Concentrix and Asurion secured 17,400 sqm and 14,400 sqm respectively, signaling the rise of provincial BPO ecosystems supported by government incentives.
Emerging hubs such as Bohol and Cavite are drawing investor attention. Developments like the 17,500-sqm MGO Business Complex and the 45,170-sqm Bellemar in Panglao, as well as Maplecrest’s nine-building complex in Cavite, highlight the growing appeal of these locations.
However, the industry faces potential headwinds from the proposed US “Keep Call Centers in America Act,” which could affect the Philippines’ USD40-billion BPO revenue base. At the same time, 67 percent of IT-BPM firms are integrating artificial intelligence tools—such as Concentrix AI Co-pilots and UiPath—reshaping workspace needs.
With global policy shifts and automation accelerating, Colliers said provincial expansion offers BPO firms a chance to build operational resilience and secure long-term growth.
