Leasing surge in 1st half may push full-year demand past 2024 levels, says Leechiu

OFFICE LEASING activity in Metro Manila surged in the first half of 2025, reaching levels not seen since 2017, as demand from the information technology-business process management (IT-BPM) sector drove a stronger-than-expected recovery, according to Leechiu Property Consultants (LPC).

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"We are all shocked at the amount of leasing activity in the first six months of the year — we haven't seen these levels since 2017," LPC Founder and Chief Executive Officer David Leechiu said in a news briefing on Thursday.

"Even without the POGOs (Philippine offshore gaming operators), this is the highest level of activity we've ever seen — and this is despite companies talking about work-from-home setups and AI (artificial intelligence) taking over jobs."

In the first half of 2025, the office market recorded 740,000 square meters (sq.m.) of leasing activity, according to LPC's Second Quarter Philippine Property Market Report. This figure accounts for 67% of the 1.1 million sq.m. total demand recorded for the full year of 2024.

"In previous years, we've also seen strong take-up in the second half, so we're banking on the possibility that demand could be even higher by yearend," LPC Director for Commercial Leasing Mikko Barranda said on the sidelines of the briefing.