The Philippine office market has entered the second half of 2025 on solid footing, with demand in the first six months reaching 740,000 square meters. This figure already represents 67 percent of the total recorded in 2024, signaling healthy market activity despite ongoing global and domestic headwinds. Both information technology-business process management (IT-BPM) and traditional industries remain key drivers of growth, with many occupiers shifting from relocation strategies toward expansion plans.

Bonifacio Global City Leads the Market

Bonifacio Global City (BGC) recorded 146,000 square meters of demand in the first half of 2025, exceeding its total take-up for the entire year of 2024 by 16 percent. The location continues to attract a diverse range of tenants, with traditional occupiers accounting for 55 percent of demand and IT-BPM companies making up the remainder. BGC’s mix of premium office stock, modern infrastructure, and strong accessibility positions it as a preferred destination for multinational corporations and high-growth local firms.

Quezon City and the Bay Area Maintain Strong Activity

Quezon City ranked second with 126,000 square meters in take-up, driven primarily by traditional occupiers, which comprised 60 percent of demand. The Bay Area followed with 102,000 square meters, supported by the IT-BPM sector’s 59 percent share. Both districts benefit from large-scale developments and a steady supply of high-quality buildings that can accommodate sizable requirements, making them competitive options for occupiers looking to consolidate or expand.

Established CBDs Remain Relevant

Makati City registered 78,000 square meters of demand in the first half of the year. While vacancy in the city stands at 15 percent, its central location and concentration of Grade A office buildings keep it relevant for companies seeking a prestigious business address. Taguig City, excluding BGC, posted 76,000 square meters of take-up, attracting a balanced mix of occupiers. However, its vacancy rate of 25 percent highlights opportunities for tenants to secure favorable lease terms in a competitive environment.

Alabang’s Strategic Appeal Strengthened by Urban Transformation

Alabang recorded 28,000 square meters of transactions in the first half of 2025, driven largely by IT-BPM firms. Its location within the southern corridor of Metro Manila offers strategic advantages for companies with employees residing in nearby residential communities, especially as infrastructure projects shorten travel times to and from major business districts. The area’s appeal is further reinforced by high-profile corporate moves, such as the decision of a leading Philippine telecommunications company to establish its headquarters in Filinvest City. This signals growing recognition of the district’s potential as a competitive alternative to traditional central business districts. With global firms already operating in the area and universities expanding in nearby Laguna and Cavite, Alabang offers companies access to a skilled and expanding talent pool within a modern, master-planned environment.

Cebu Continues to Outperform Provincial Markets

Outside Metro Manila, Cebu remains the frontrunner, accounting for 81,000 square meters or 51 percent of provincial demand. The city’s strong IT-BPM base, skilled labor pool, and robust infrastructure make it the preferred destination for regional operations. Clark and Pampanga followed with 28,000 square meters of take-up, 75 percent of which came from IT-BPM occupiers, while Iloilo registered 17,000 square meters with an even higher IT-BPM share at 96 percent. These figures demonstrate that demand is not limited to the National Capital Region and that regional centers continue to gain traction among major occupiers.

Outlook for the Remainder of 2025

Tenant exits have declined for two consecutive quarters, suggesting greater stability in the market. The IT-BPM sector, which has already reached 86 percent of its total 2024 demand within the first half of this year, is expected to sustain momentum, supported by continued business expansions and new market entrants.

With expansion taking precedence over relocation in many occupiers’ strategies, both established central business districts and emerging provincial hubs are set to benefit in the months ahead. Access to talent, transport connectivity, and the availability of high-quality office space will remain decisive factors in location selection, shaping the next phase of growth for the Philippine office market.