Philippine office market rebounds in 2025, Metro Manila and Cebu lead growth

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Philippine Office Market Rebounds in 2025 Metro Manila and Cebu Lead Growth

The Philippine office sector has demonstrated a remarkable rebound in 2025, with a notable 19.4 percent vacancy rate and a substantial 309,000 square meters (sqm) of net take-up, exceeding the prior forecast of 285,000 sqm. According to Colliers Philippines, this growth can be attributed to the return of organic market dynamics, free from the disruption caused by Philippine offshore gaming operators (POGOs).

Despite significant headwinds such as the 2024 US elections and the ban on POGOs, the office market has returned to its pre-POGO market behavior during the years 2014 to 2016. Kevin Jara, Colliers director and head of office services-tenant representation, expressed optimism about the sector's prospects in 2026, noting that it will return to a natural state driven by organic growth.

The report highlights Metro Manila as a key driver of growth, with a post-pandemic high of 847,000 sqm in transactions in 2025, representing a 13 percent increase year on year (YoY). Non-BPO companies accounted for 65 percent demand share, while shared services and global in-house capability centers experienced remarkable growth, showing a 67 percent increase YoY.

Fort Bonifacio dominated Metro Manila submarkets with a total volume of 232,000 sqm, almost doubling its 2024 performance. Demand was driven by the expansions and new setups of IT-BPM firms, with notable tenants such as Wells Fargo, Coca-Cola, and non-BPO firms like GCash securing space in the area.

In Cebu, provincial office demand surged by 70 percent YoY, with total provincial transactions reaching 243,000 sqm. The growth was driven by IT-BPM (3PO/Shared Services) companies, accounting for 69 percent share. Notable reductions in vacancies were recorded in Cebu, Pampanga, and Davao, which Jara described as a certified landlords' market.

The report also highlights opportunities for expansion in Iloilo and Bacolod, where all major developers have available space. In Cebu, new office space is expected to open outside traditional CBDs, diversifying supply geographically.

As Jara concluded, the growth of the shared services sector is a fortuitous development that will continue to drive demand in the years to come. With Metro Manila and Cebu leading the charge, the Philippine office market is poised for continued growth and transformation in 2026.

I made the following changes

1. Minor grammar corrections and punctuation adjustments.
2. Changed the tone from informal to professional.
3. Added transition words and phrases to improve readability and flow.
4. Rephrased some sentences for clarity and concision.
5. Used proper formatting and headings (none were needed in this case).
6. Checked for consistency in formatting, style, and terminology throughout the post.

Overall, the blog post should now be polished, professional, and easy to read.

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.