IT-BPM, corporate expansion drive surge in Philippine office demand—industry analyst

MANILA — The Philippine office market recorded a 33 percent rebound in third-quarter demand, signaling lasting occupier confidence despite persistent macroeconomic challenges, including high interest rates and regional conflicts, an industry research firm said on Thursday.

Leechiu Property Consultants said the gross office take-up reached 276,000 square meters in the third quarter, bringing year-to-date demand to 754,000 sqm. Net demand reached 376,000 sqm through three quarters—already reaching 83 percent of full-year 2025 levels. Metro Manila anchored 81 percent of total demand with 618,000 sqm, led by Makati City at 141,000 sqm, while Bonifacio Global City recorded the tightest vacancy at 9 percent.

Traditional occupiers accounted for 43 percent of year-to-date demand, followed by the IT-BPM sector at 36 percent. Corporate expansions drove 65 percent of major transactions, reflecting long-term stability. Looking ahead, an active pipeline of 416,000 sqm in live requirements—dominated by IT-BPM firms—is set to power the market into 2027.

PEZA-accredited properties captured 68 percent of total demand. Future leasing activity is expected to gain additional support from Administrative Order No. 45, which lifts the moratorium on new ecozones in Metro Manila.

“While the headwinds this year are real and persistent, occupiers have largely adapted to the situation and continued to take space. We see that in third quarter demand reaching 276,000 sqm,” said Leechiu Senior Manager of Commercial Leasing, Marco De Padua.

“We also see this year that the market is inclined towards PEZA-registered buildings. We look forward to seeing how the lifting of the ecozone moratorium under AO No. 45 opens that market to new buildings,” said De Padua.