Iloilo is no longer merely an alternative to Metro Manila and Cebu. It is increasingly becoming a destination in its own right for businesses seeking growth, talent, and room to expand, according to a new Colliers Philippines market report.
The city has emerged as the country’s fourth-largest provincial office market, boasting about 372,000 square meters of office space as of the first quarter of 2026. More telling, however, is demand: Iloilo posted the highest volume of office leasing transactions among provincial markets, overtaking even Cebu despite a generally slower leasing environment.
That momentum reflects more than abundant office supply. It signals a city whose infrastructure, workforce, and urban planning are beginning to converge.
Nowhere is Iloilo’s transformation more evident than Iloilo Business Park, Megaworld’s township built on the former Mandurriao Airport. Once the city’s aviation gateway, the former runway has evolved into a mixed-use district anchored by PEZA-accredited offices, hotels, residences, retail establishments, and convention facilities—a vivid example of how obsolete infrastructure can be repurposed into a modern economic engine.
Connectivity continues to strengthen Iloilo’s investment case. The newly opened P2.26-billion Iloilo River North Bank Road, or Sunset Boulevard, has improved access between Mandurriao, Oton, and southern Iloilo, while upgrades to Iloilo International Airport and the proposed Panay-Guimaras-Negros Bridge promise to further shrink travel times and expand labor and business mobility.
Equally important is talent. As one of Western Visayas’ leading education hubs, Iloilo produces a steady stream of graduates in business, finance, healthcare, and allied sciences, providing a strong pipeline for IT-BPM firms and healthcare outsourcing companies already operating in the city.
Colliers noted that vacancy remains relatively high at 32 percent, largely due to recent office completions. Yet with no major new office projects expected after 2026, the market has an opportunity to absorb available space while maintaining competitive rental options for expanding occupiers.
For investors, the surplus may appear excessive today. But viewed differently, it could become Iloilo’s biggest competitive advantage tomorrow: ample, modern office space ready before demand fully catches up.
