{"id":371281,"date":"2026-07-24T16:13:52","date_gmt":"2026-07-24T10:43:52","guid":{"rendered":"https:\/\/ebiztoday.news\/?p=371281"},"modified":"2026-07-24T16:13:52","modified_gmt":"2026-07-24T10:43:52","slug":"office-market-faces-tougher-second-half-as-industrial-outperforms-cbre","status":"publish","type":"post","link":"https:\/\/ebiztoday.news\/index.php\/2026\/07\/24\/office-market-faces-tougher-second-half-as-industrial-outperforms-cbre\/","title":{"rendered":"Office market faces tougher second half as industrial outperforms \u2014 CBRE"},"content":{"rendered":"

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STOCK PHOTO | Image from Magnific<\/a><\/figcaption><\/figure>\n<\/div>\n

PHILIPPINE office landlords face a more difficult second half as weak demand and aging buildings weigh in the marketplace, while industrial and provincial retail properties offer developers higher investment opportunities, CBRE Philippines said.<\/span><\/p>\n

The industrial real estate services firm said the office market would wish greater than 500,000 square meters of take-up within the second half to match last 12 months\u2019s take-up.<\/p>\n

\u201cWe must be bracing ourselves for that,\u201d CBRE Philippines Country Head Jie Espinosa said in the course of the firm\u2019s second-quarter market briefing on Thursday.<\/p>\n

He said developers are also contending with an aging office stock along with slower leasing activity.<\/p>\n

\u201cIt\u2019s not nearly vacated spaces anymore. Spaces that were left behind by locators. Beneath all of those vacated spaces, which could be greater than 50% of the market at this stage, you’ve got a variety of aging buildings behind them. Approaching 10 years, perhaps greater than 10 years. Numerous the developers now can have to grapple with the actual fact how do they turn into more competitive.\u201d<\/span><\/p>\n

He said landlords that lose tenants could face prolonged emptiness periods before securing replacements.<\/p>\n

\u201cIf a landlord were to lose a tenant at this stage, and they’d should face the implications of waiting to backfill it, it could take almost one to 4 years for them to attend simply to have the opportunity to interchange that specific space,\u201d he said.<\/p>\n

Against that backdrop, Mr. Espinosa said the commercial and logistics segment stays the strongest-performing property sector and is predicted to sustain its momentum through the second half.<\/p>\n

\u201cOur industrial and logistics sector has had a banner first half to date. We expect that to be true for the second half as well.\u201d<\/p>\n

\u201cWe actually think that of the entire sectors, if I were to be a developer, that\u2019s the actual sector where I could justify investing and I might have the opportunity to expect higher yields in comparison with the entire assets that I could probably consider,\u201d he added.<\/p>\n

Mr. Espinosa also cited opportunities within the retail segment, particularly in provincial markets where overseas Filipino employee (OFW) remittances proceed to support consumer spending.<\/span><\/p>\n

\u201cIn the event you have a look at the way in which we have a look at our business, the way in which we\u2019re attempting to diversify, we understand that retail still has a runway to go. And it\u2019s not necessarily in National Manila.\u201d<\/p>\n

\u201cThe provincial markets where your remittances typically go, the vast majority of your $35.6 billion of remittances, that\u2019s going to create structural demand in key urban areas outside of Metro Manila.\u201d<\/p>\n

He urged local developers to maximise idle landholdings to capture demand outside the capital.<\/p>\n

\u201cMost of those local developers typically require tie-downs. At the moment, they\u2019re sitting on idle asset. They’ve a variety of land. They\u2019re probably well land-bound. They usually should trigger the chances of those assets that they currently have,\u201d he said.<\/p>\n

Mr. Espinosa also urged the industry to arrange for the long-term effects of artificial intelligence (AI) on office demand and employment.<\/p>\n

\u201cAnd that\u2019s why for this quarter, the query that we\u2019re posing out there is, how will we survive AI?\u201d<\/p>\n

He said the Philippines must ensure its workforce stays competitive as AI creates latest industries and changes office space requirements.<\/p>\n

\u201cWill we have the opportunity to be competitive enough to backfill all of those 1.7 million square meters that we currently have, not only in Metro Manila, but in provincial locations? Is the labor that we currently have lying in wait?\u201d<\/p>\n

\u201cI believe those are the more essential questions frame that we want to reply,\u201d he added. \u2014 Juliana Chloe A. Gonzales<\/b><\/p>\n<\/p><\/div>\n

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STOCK PHOTO | Image from Magnific PHILIPPINE office landlords face a more difficult second half as weak demand and aging buildings weigh in the marketplace, while industrial and provincial retail properties offer developers higher investment opportunities, CBRE Philippines said. The industrial real estate services firm said the office market would wish greater than 500,000 square […]<\/p>\n","protected":false},"author":1,"featured_media":371282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[47585,3619,5393,962,54,7998,6342],"class_list":["post-371281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cbre","tag-faces","tag-industrial","tag-market","tag-office","tag-outperforms","tag-tougher"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t