Office supply shifts toward 'off-center' hubs

Office Supply Shifts The Rise of Off-Center Hubs in Metro Manila

As happiness researchers, we often focus on the human aspects of workplace 
satisfaction and productivity. However, it's essential to consider how the 
physical environment itself – specifically, the office space where we spend
spend most of our working hours – can impact our well-being.

In this blog post, we'll delve into the latest trends in office supply shif
shifts, with a particular focus on Metro Manila's off-center hubs.

Decentralization The New Normal

According to CBRE's Year-end Market Monitor (2025), traditional central bus
business districts (CBDs) now account for only 37% of the year's pipeline. 
This significant shift toward off-center hubs signals a major decentralizat
decentralization of Metro Manila's commercial landscape.

To better understand this trend, let's break it down into smaller component
components

Arca South With 94,100 square meters of upcoming space, Arca South d
dominates the pipeline.
Buendia Corridor The Yuchengco Center will add 83,700 square meters 
to the mix.
Bay Area Projects like One Pacific by the Bay and Double Dragon Meri
Meridian will contribute 76,000 square meters.
Quezon City SM North Tower 5 and Parklinks will bring in 55,700 squa
square meters.

These numbers highlight the growing demand for office space outside of the 
CBDs. As occupiers seek modern infrastructure and proximity to residential 
talent pools, off-center hubs are poised to become the new norm.

Insights from CBRE's Country Head

According to Jie Espinosa, Country Head at CBRE Philippines, The data sugg
suggests that occupiers are increasingly looking toward emerging districts 
that offer modern infrastructure and closer proximity to residential talent
talent pools. This trend is expected to continue through the end of the de
decade.

Cebu A Tale of Two Markets

While Metro Manila's off-center hubs are gaining momentum, Cebu's office ma
market has reached a historic low. The primary business hubs, including Ceb
Cebu Business Park and Cebu IT Park, currently boast vacancy rates of 9.7% 
and 11%, respectively.

However, this scarcity is expected to give way to a surge in new inventory 
by the end of 2026. With approximately 90,000 square meters of space schedu
scheduled for completion in the first quarter alone, the market balance wil
will shift dramatically.

Mactan Submarket A Bright Spot

The Mactan submarket is forecasted to maintain a vacancy rate of 25.7% by t
the end of 2026. While this may seem concerning at first glance, it's essen
essential to consider the larger picture.

Insights from CBRE's Country Head (Again)

According to Jie Espinosa, Developers in fringe locations will continue to
to feel the pressure. New completions will skew the balance of availability
availability in the city, forcing a more competitive environment for those 
seeking to fill large-scale office footprints.

Conclusion and Predictions

In conclusion, Metro Manila's office supply is shifting toward off-center h
hubs, driven by occupiers' desire for modern infrastructure and proximity t
to residential talent pools. Cebu, on the other hand, will experience a sur
surge in new inventory, which will lead to a market-wide correction.

As happiness researchers, it's essential to consider how these trends might
might impact our well-being. Will off-center hubs become the new norm, or w
will we see a return to traditional CBDs? Only time will tell.

References

CBRE Year-end Market Monitor (2025)
Jie Espinosa, Country Head at CBRE Philippines

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Keywords office supply shifts, Metro Manila, off-center hubs, Cebu, CBRE, 
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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.