A significant shift is underway in Metro Manila’s office landscape, driven by a new reality of hybrid work and a growing emphasis on financial prudence among multinational corporations.
Companies are now prioritizing strategies focused on preserving capital and maintaining flexibility, leading to a surge in demand for workspace solutions that offer predictable costs over time.
The focus has moved beyond simply securing space; businesses are actively seeking Grade A and B+ offices that promise swift occupancy and transparent pricing, reflecting increasingly condensed planning horizons of just six to eighteen months.
This trend is fueling a preference for ready-to-occupy and custom-built offices, minimizing the complexities and delays traditionally associated with office setup.
The value proposition in the Philippine office market is evolving, with speed to market, operational efficiency, and risk reduction now considered paramount alongside location and rental costs.
Historically, companies invested heavily in long-term leases and extensive fit-out projects, often facing substantial expenses – typically ranging from ₱45,000 to ₱70,000 per square meter – for interior design and infrastructure.
However, the challenges inherent in traditional leasing, including design approvals, permitting processes, and construction delays, have become major obstacles for businesses seeking agility.
Despite elevated vacancy rates – currently at 19.8% as of the third quarter of 2025 – leasing activity is increasingly defined by quality, preparedness, and adaptability rather than sheer square footage.
Current market data reveals distinct patterns in space requirements, with traditional businesses averaging around 830 square meters, while third-party operators and government entities typically lease approximately 1,500 square meters, often encompassing an entire floor.
The shared services sector demonstrates the largest footprint, consistently occupying spaces of around 3,000 square meters, equivalent to two or more floors, highlighting their commitment to large-scale operations.
Looking ahead, office vacancy is projected to experience a slight increase to 19.9% in 2026, before embarking on a steady decline to 19.2% by 2028, signaling a gradual stabilization and potential recovery in the market.
