<\/p>\n
THE PHILIPPINE office market began 2026 with stronger net demand, as net absorption rose 77% yr on yr to 133,000 square meters (sq.m.) in the primary quarter (Q1), property consultancy firm Leechiu Property Consultants (LPC) said.<\/p>\n
Gross demand, nevertheless, reached 234,000 sq.m., down 22% from the previous quarter, which LPC said was \u201cconsistent with typical first-quarter seasonal patterns.\u201d<\/p>\n
LPC Director of Industrial Leasing Mikko Barranda said market conditions remain stable but have gotten more complex.<\/p>\n
\u201cAt this point, the market stays on target, however the path forward is becoming less straightforward,\u201d he said during a briefing on Tuesday.<\/p>\n
He added that \u201ctenants have gotten more discerning and intentional of their real estate decisions, which have to be matched by greater flexibility from the market.\u201d<\/p>\n
Traditional occupiers drove demand, accounting for 143,000 sq.m., or 61% of total take-up. Information technology and business process management (IT-BPM) firms contributed 79,000 sq.m., or 34%.<\/p>\n
Expansion deals dominated each segments, with 112,000 sq.m. recorded for traditional tenants and 51,000 sq.m. for IT-BPM firms.<\/span><\/p>\n Demand for managed facilities rose to 31,000 sq.m. as occupiers sought \u201cready-to-use spaces,\u201d LPC said.<\/p>\n The rise in net demand was partly driven by a 62% year-on-year decline in vacated space to 101,000 sq.m. for the quarter.<\/span><\/p>\n LPC attributed the development mainly to the \u201cabsence of Philippine offshore gaming operator (POGO)-related exits.\u201d<\/p>\n The firm said occupiers have \u201clargely accomplished right-sizing and aren’t any longer giving up additional space.\u201d<\/p>\n In Metro Manila, Makati City led office transactions with 76,800 sq.m., comparable to 54% of its total demand in 2025.<\/p>\n LPC said 63% of those transactions were positioned along Ayala Avenue, with 70% involving semi-fitted or fitted units.<\/p>\n \u201cMakati stays attractive as occupiers reap the benefits of competitive rents and fitted spaces, while maintaining the prestige of an Ayala Avenue address,\u201d the firm said.<\/span><\/p>\n Bonifacio Global City (BGC) maintained the bottom emptiness rate at 8%, compared with the Metro Manila average of 18%.<\/p>\n Outside Metro Manila, demand reached 34,000 sq.m., led by Cebu with 11,700 sq.m., followed by Iloilo with 11,000 sq.m. and Clark with 6,600 sq.m.<\/p>\n LPC said provincial demand stays concentrated in \u201cestablished IT-BPM hubs and infrastructure-linked corridors.\u201d<\/p>\n Total office stock reached 2.7 million sq.m. in Metro Manila and 723,000 sq.m. within the provinces.<\/p>\n Metro Manila is anticipated so as to add 807,000 sq.m. of recent office supply through 2028, with Quezon City accounting for 240,000 sq.m.<\/span><\/p>\n The lively leasing pipeline stood at 227,000 sq.m., split between IT-BPM firms at 114,000 sq.m. and traditional occupiers at 113,000 sq.m.<\/p>\n Mr. Barranda said the fundamental risk lies in whether these requirements will translate into accomplished deals.<\/p>\n He questioned \u201cwhether these requirements can translate into actual transactions amid current uncertainties,\u201d including the energy situation and geopolitical tensions.<\/span><\/p>\n Throughout the IT-BPM pipeline, third-party outsourcers accounted for 61%, while Global Capability Centers (GCCs) made up 39%.<\/span><\/p>\n Despite these risks, LPC said \u201cfive-year lease terms remain dominant at 71% of the pipeline sample, reflecting continued occupier commitment to physical office space despite evolving workplace strategies.\u201d \u2014 Alexandria Grace C. Magno<\/b><\/span><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" PNA PHOTO BY ROBERT OSWALD P. ALFILER THE PHILIPPINE office market began 2026 with stronger net demand, as net absorption rose 77% yr on yr to 133,000 square meters (sq.m.) in the primary quarter (Q1), property consultancy firm Leechiu Property Consultants (LPC) said. Gross demand, nevertheless, reached 234,000 sq.m., down 22% from the previous quarter, […]<\/p>\n","protected":false},"author":1,"featured_media":315173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[14062,4532,54,3340,5125,2918],"class_list":["post-315172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cautious","tag-demand","tag-office","tag-outlook","tag-rises","tag-turns"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/315172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/comments?post=315172"}],"version-history":[{"count":2,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/315172\/revisions"}],"predecessor-version":[{"id":315175,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/315172\/revisions\/315175"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media\/315173"}],"wp:attachment":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media?parent=315172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/categories?post=315172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/tags?post=315172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}