Tilting toward growth: Real recovery in PHL office market amid disruptions

AS 2025 draws to a close, the Philippine office market continues to demonstrate that it is entering a new phase of growth.

- By Kevin Jara and Kath Taburada

The past few quarters have revealed a market that is recalibrating in response to changing occupier needs, economic headwinds, and technological disruptions. While the numbers reflect a true rebound in activity, the more compelling narrative lies in how the market is preparing for what comes next.

METRO MANILA PERFORMS BEYOND EXPECTATIONS

Metro Manila's office sector has outpaced forecasts for 2025, with net take-up in the first nine months of 2025 already surpassing the full-year target. As of the third quarter (Q3), net absorption reached 215,000 square meters, well above the projected 150,000 square meters. This uptick in demand is largely attributed to sustained transaction activity and a significant decline in space surrenders following the exit of Philippine Offshore Gaming Operators (POGOs). With no significant POGO leases returning to market, surrenders are expected to continue easing in the months ahead. Most vacated spaces are now the result of natural lease expirations and non-renewals, rather than large-scale exits, an encouraging sign of market normalization.

Colliers Philippines also notes transaction volumes in Q3 2025 were the highest since the POGO ban, underscoring the market moving past earlier disruptions by POGOs. Traditional and outsourcing firms, which account for roughly 70% of leasing motivations, are leading the charge. Notably, Bonifacio Global City (BGC) emerged as the most active submarket, recording 193,000 square meters in office deals, largely fueled by expansions from third-party outsourcing and shared services firms.