The Metro Manila office market has found its stride again, with net demand in the first nine months of 2025 already surpassing full-year forecasts—driven by strong leasing activity, fewer space surrenders, and a revived appetite for flexible work arrangements, according to property consultancy Colliers.
Colliers said total office transactions hit 674,900 square meters, up 11 percent year-on-year, signaling sustained recovery after the POGO exodus and pandemic slump. Fort Bonifacio, Ortigas, Makati, and the C5 Corridor led the action, while Cebu continued to outperform nearly all Metro Manila submarkets. Nationwide, office deals outside the capital reached 210,000 square meters, up 14 percent from last year, buoyed by growing demand in Cebu, Pampanga, and Iloilo.
With momentum building, Colliers upgraded its 2025 net take-up forecast to 285,000 square meters and trimmed its year-end vacancy outlook to 19.8 percent from 21.4 percent, citing limited new supply and steady demand from outsourcing and traditional firms. Average rents in prime business districts such as Makati and Bonifacio Global City inched up by less than two percent.
“While the market has regained its footing, this is no time for complacency,” Colliers said. “Landlords must innovate or evaporate.” It urged property owners to modernize older buildings with green certifications, energy-efficient systems, and wellness amenities to stay competitive against newer, ESG-aligned developments.
The consultancy also noted that “asset-light” strategies are gaining traction, with occupiers preferring flexible leasing, managed offices, and OPEX-based deals to reduce upfront costs. Landlords, it said, could also partner with flex-space operators to activate idle assets.
Beyond Metro Manila, Colliers expects Cebu’s strong run to continue, supported by a steady flow of BPO expansions and new entrants. From 2025 to 2028, annual new supply is projected to average 359,600 square meters—lower than the pre-pandemic peak—suggesting a market gradually moving toward balance.
“Vacancy is easing, demand is diversifying, and landlords are finally adapting,” Colliers said. “The office market isn’t just stabilizing—it’s learning to evolve.”
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