Colliers Philippines is seeing shifts in the office market. Overall transactions in Metro Manila and Cebu have been improving and outsourcing and traditional firms continue to occupy office space amid the popularity of work-from-home (WFH) and challenges posed by artificial intelligence (AI). Certain business districts are performing better than others, enabling landlords to command premium rates and compelling them to start lining up projects.
As we kickstart 2026, it is important to pause and reflect on the realities that defined 2025. The past year was best described as a period of recalibration for the Philippine office market especially for landlords—a transition phase marked by resilience and gradual recovery as the sector worked through the lingering effects of the pandemic and the POGO ban.
For this year, office market stakeholders should be on the look out for opportunities amidst the uncertainties. The Philippine office market is not just turning a corner; it’s pivoting smartly toward quality, flexibility, stability, and sustainability.
Recovery in Motion: Breaching office transaction targets
As of end 9M 2025, net take-up in Metro Manila reached 215,000 sqm, already surpassing our full-year target of 150,000 sqm and prompting an upward revision of our forecast to 285,000 sqm. Meanwhile, vacancy improved to 19.8% in Q3 2025 from 20.0% a quarter ago due to fewer surrenders and sustained demand from traditional (including government agencies) and outsourcing firms.
Outside the capital region, about 210,000 sqm of office transactions were recorded in 9M 2025, with Cebu accounting for more than half of the total deals. Most of the transactions recorded in Cebu were expansions from outsourcing firms, resulting in a vacancy of 17.7%, the lowest since Q3 2020. Other hubs that recorded major deals in 2025 include Pampanga, Iloilo, Davao, Bohol, and Bacolod.
Landlords continue to cash in on demand from large outsourcing companies. Among the companies that occupied office space in Cebu last year include Concentrix, Asurion, Wipro, Optum, EXL Service, TDCX, and ResultsCX. These firms occupied spaces in Cebu Business Park (CBP), Cebu IT Park (CITP) and Mactan.
Developers have also been active in building new office towers outside of Cebu’s established business hubs (CBP & CITP). From 2026 to 2028, we project the annual delivery of 58,500 sqm of new office space with the Reclamation Area and Mandaue accounting for more than 80% of the new supply during the period.
New developments such as the One Mandani Bay Office Tower is setting its stage for premium or should we say world-class workspaces outside the Metro Manila. It caters to the “flight-to-quality” demand that is now the market’s primary drive.
The “flight-to-quality” demand is being led by new world-class developments like One Mandani Bay. As a 3-star BERDE-registered and PEZA-accredited tower, it addresses 2025’s aging stock gap through:
Push for sustainability as ROI, not just PR
Green Certifications are now called “strategic differentiators”. Tenants are not just looking for office spaces; they are looking for partners to help them meet ESG goals, and boost employee well-being.
Landlord must also note that “one-and-done” upgrades no longer impressive. Reinvesting in technology, modern lobbies, amenities, and façades signals long-term commitment and attracts flight-to-quality tenants. Buildings that stay ahead of demand curves will lease faster and command better rates in 2026.
Premiumization: Elevating Experiences, Not Just Spaces
Premiumization is not about price tags, it is about purposeful design and thoughtful services. High-quality common areas, wellness spaces, and flexible layouts don’t just fill floors, they help companies attract and retain talent. When BPOs recruit in world-class spaces, it reflects their brand culture and commitment to invest in both their workplace and their people.
One Mandani Bay embodies this shift; it offers a business a clear edge through intuitive office space classified into 3 tiers–Penthouse, Premium and Standard, with thoughtfully designed common areas that elevate the work experience.
What’s next for the office market?
The Philippines office market is catching its stride, with Colliers reporting stronger net take-up, easing vacancy, and heightened tenant activity in both Metro Manila and regional centers such as Cebu. In 2025, net take-up in Cebu reached 100,300 sqm, up from only 4,400 sqm a year ago. The astronomical jump indicates major occupiers’ confidence in Cebu.
Developers who do not just build but upgrade, adapt, and elevate won’t just stay in the race; they will set the pace.
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