THE OFFICE emptiness rate in Metro Manila is forecast to ease barely to 19.6% by yearend, with Ortigas Center standing out as a result of its regular decline over the past three to 4 quarters, in keeping with property consultancy CBRE.
“There’s a slight improvement with the general emptiness in Metro Manila to about 20.3%, and for the remaining of the 12 months we’re forecasting a slight improvement towards the latter part and early a part of next 12 months,” the CBRE team said during its 2025 Retrospective event last week.
CBRE expects Metro Manila’s emptiness rate to say no to about 19.6% this 12 months from the 20.3% recorded within the fourth quarter of 2025.
Its data showed that the Bay Area sub-district continued to post the very best emptiness rate within the fourth quarter, largely as a result of concentrations of vacated Philippine offshore gaming operator (POGO) spaces. This was followed by Alabang at about 29.6% and Quezon City at around 26%, where much of the recent latest completions are situated.
With POGOs largely gone, the report noted that newly vacated spaces fell to only 15,300 square meters (sq.m.) within the fourth quarter.
Ortigas Center’s office emptiness rate was estimated at about 13.3%, reflecting a gentle drop over the past three to 4 quarters. CBRE said this might breach single-digit levels by the latter half of 2026.
Meanwhile, demand remained strong in the primary three quarters of 2025, although fourth-quarter demand slipped to about 165,000 sq.m.
Despite this, total absorption for the 12 months reached around 854,600 sq.m., the strongest up to now five years.
“Demand improves by 8% 12 months on 12 months, even with a lackluster fourth quarter,” it noted.
The transaction share of the knowledge technology and business process management (IT-BPM) sector fell to twenty-eight% in 2025, the bottom in five years, as traditional sectors drove demand and reduced average deal sizes to 1,262 sq.m.
Data showed that 71% of all transactions occurred in Metro Manila, with 68% concentrated in buildings owned by major developers.
Cebu emerged as a key growth driver, with absorption doubling to 128,500 sq.m. in 2025 from 61,000 sq.m. in 2024. Metro Manila and other provincial markets posted declines in uptake.
Metro Manila currently has a complete available office supply of about 1.86 million sq.m., consisting of each latest and vacated space. Newly accomplished and unleased space accounts for 44% of the full, while the remaining 56% consists of vacated space.
Makati and Fort Bonifacio hold the biggest volumes of obtainable vacated office space, much of which is in buildings developed by smaller or boutique developers.
Meanwhile, most available spaces in Alabang and Quezon City are in projects by major developers. — Alexandria Grace C. Magno