According to property consultancy CBRE, the office vacancy rate in Metro Manila is projected to decline slightly to 19.6% by year-end, with Ortigas Center standing out due to its consistent decline over the past three to four quarters.
“There has been a slight improvement in Metro Manila with total vacancy at around 20.3%, and for the rest of the year we are projecting a modest improvement in the latter part and early part of next year,” the CBRE team said during its 2025 retrospective event last week.
CBRE expects Metro Manila's vacancy rate to decline to about 19.6% from 20.3% recorded in the fourth quarter of this year to 2025.
Its data showed that the Bay Area sub-district continued to have the highest vacancy rates in the fourth quarter, largely due to the concentration of vacant Philippine Offshore Gaming Operator (POGO) spaces. It was followed by Alabang with about 29.6% and Quezon City with about 26%, where most of the recent new projects are located.
With POGOs largely gone, new vacancies dropped to just 15,300 square meters (sq m) in the fourth quarter, the report said.
Ortigas Center's office vacancy rate was estimated at approximately 13.3%, reflecting a steady decline over the past three to four quarters. CBRE said it could cross single-digit levels by late 2026.
Meanwhile, demand remained strong in the first three quarters of 2025, although demand declined to about 165,000 square meters in the fourth quarter.
Despite this, total absorption for the year reached approximately 854,600 square metres, the strongest in the past five years.
“Demand has improved 8% year over year, despite a weak fourth quarter,” it said.
The transaction share of the information technology and business process management (IT-BPM) sector fell to 28% in 2025, the lowest in five years, as traditional sectors increased demand and reduced the average deal size to 1,262 sq m.
The data showed that 71% of all transactions took place in Metro Manila, with 68% concentrated in buildings owned by major developers.
Cebu emerged as a major growth driver, with absorption doubling to 128,500 sq m. From 61,000 square meters in 2025. In 2024. Metro Manila and other provincial markets recorded a decline in offtake.
The total available office supply in Metro Manila currently stands at about 1.86 million square meters, including both new and vacant space. Newly built and unleased space accounts for 44% of the total, while the remaining 56% comprises vacant space.
Makati and Fort Bonifacio have the largest amount of available vacant office space, most of which is in buildings developed by small or boutique developers.
Meanwhile, most of the available spaces in Alabang and Quezon City are in projects of major developers. — Alexandria Grace C. Magno