Metro Manila’s office market continued its recovery in the first half of 2025, with total transactions reaching 446,100 square meters—up 7 percent year-on-year and 33 percent higher than the second half of 2024.
The figure has already surpassed half of the total office demand recorded for the entire 2024, reflecting strong leasing momentum heading into the second half of the year.
According to property consultancy firm Colliers Philippines, the bulk of the demand came from Fort Bonifacio, Quezon City, and Makati central business district, which collectively accounted for nearly two-thirds of closed deals. Notable transactions included leases by Coca-Cola, Teleperformance, Carenet Health, and UnifyCX, it said.
Colliers said that office demand is being driven by a combination of IT-BPM expansions, traditional occupiers returning to the market, and a flight-to-quality among tenants seeking better locations and amenities.
Take-up of office space in areas outside the Metro Manila rose 28 percent year-on-year to 159,100 square meters in the first half of 2025. Cebu led the surge, followed by Pampanga and Iloilo, with key transactions from Asurion, Concentrix, Wells Fargo, and Sutherland.
New supply completed in the second quarter reached 69,400 square meters, bringing year-to-date completions to 135,100 square meters. For full-year 2025, Colliers projects total new supply to reach 525,500 square meters, down from the earlier estimate due to construction delays.
Vacancy slightly increased to 20 percent due to new completions and space returns, although vacated stock dropped by 27 percent from the second half of 2024—driven mainly by POGO pre-terminations and right-sizing by traditional firms.
