THE PHILIPPINE office market is expected to maintain gradual growth next year, driven by rising demand from information technology-business process management (IT-BPM) tenants and renewed take-up from traditional sectors, according to property consultancy Leechiu Property Consultants (LPC).
“While challenges persist, the Philippine office sector has repeatedly proven its resilience, and all signs suggest that momentum will continue into the coming year,” said Mikko Barranda, LPC director for commercial leasing, in a statement on Monday.
Year to date, office take-up rose 10% to 1.22 million square meters (sq.m.), the consultancy said in its Fourth-Quarter Property Market Report.
Of the total, the IT-BPM sector accounted for 32% (549,000 sq.m.), while other tenants — including traditional corporates, government agencies, and Philippine inland gaming operators — took up 68% (671,000 sq.m.) of space.
“This performance underscores the sector’s enduring relevance despite ongoing global headwinds, geopolitical uncertainty, and economic volatility,” Mr. Barranda added.
Among submarkets, Bonifacio Global City (BGC) led with 218,000 sq.m., a 73% increase in transactions, followed by Quezon City (169,000 sq.m.) and the Ortigas-Mandaluyong area (155,000 sq.m.). In the provinces, Cebu topped with 150,000 sq.m., or 55% of provincial take-up.
Net take-up rose 13% to 476,000 sq.m. in 2025, up from 422,000 sq.m. a year earlier. LPC noted that steady demand and fewer large-scale exits helped stabilize net absorption, despite elevated vacated space earlier in the year.
Vacated spaces fell 59% to 205,000 sq.m. in the fourth quarter, largely due to reduced downsizing and ongoing consolidation, mainly among IT-BPM firms.
LPC projects 2.3 million sq.m. of upcoming office supply nationwide over the next five years, with 1.9 million sq.m. expected to come online in Metro Manila from 2026 onwards.
Mr. Barranda said the office market is likely to sustain demand as companies continue to prioritize onsite work, while developers remain flexible to meet tenants’ evolving requirements.
“Occupiers are embracing flexible strategies, consolidations, flight-to-value opportunities, and long-term growth planning, while landlords are responding with improved terms, more efficient spaces, and investments in sustainability and smart-building features,” LPC said.
Over the next three years, lower interest rates and a tighter supply pipeline are expected to support transaction activity.
“However, the country’s success in attracting long-term investment flows will depend on its ability to enhance competitiveness through manufacturing revival, office space reimagination, and workforce upskilling,” LPC added, highlighting the need for key sectors such as real estate, tourism, manufacturing, and retail to address pricing gaps, infrastructure bottlenecks, and global competition. — Beatriz Marie D. Cruz
