The supply of Philippine Economic Zone Authority (PEZA)-accredited office space in Metro Manila is tightening, particularly in major central business districts, raising concerns over limited expansion options for key occupiers.
According to Kevin Jara, director of the Office Services Division at Colliers, PEZA-accredited buildings remain a “prime consideration” for business process outsourcing firms and other registered locators due to the fiscal incentives they offer. However, only about 41 percent of the current office development pipeline carries PEZA accreditation.
No new supply is expected in core districts such as Makati CBD and Ortigas Center, while only limited additions are anticipated in Bonifacio Global City. Future office developments are increasingly shifting to emerging locations including the Bay Area, Quezon City, the C5 corridor, and Mandaluyong.
Total PEZA-accredited office stock in Metro Manila has declined to around 1.46 million square meters from 1.59 million a year earlier, with a significant portion of existing inventory now more than a decade old.
Jara noted that large occupiers requiring at least 5,000 square meters—typical for shared services and global capability centers—face a shrinking pool of viable options across major CBDs.
He added that the government may need to revisit current policies, including the possible lifting of the moratorium on PEZA applications in Metro Manila, to support expansion and enable “flight-to-quality” relocations among existing locators seeking newer, more efficient spaces.
Office rents have remained broadly stable, although some aging Grade A buildings in prime areas have started to edge rates higher amid improving occupancy.
Meanwhile, flexible workspace providers continue to expand, offering companies shorter-term, lower-risk leasing options as they navigate evolving workplace strategies.
