Growth in Philippine office space demand accelerating

MANILA, Philippines — Demand for office space in the Philippines grew at the second-fastest pace in the Asia-Pacific region, reflecting a recovery in the sector and a broader shift in occupier preferences.

A Colliers study released earlier this week found that office demand in the Philippines grew by 56 percent in the first semester, second to Singapore’s surge of 12 times.

READ: Worst is over for Philippines’ property sector – report

According to Colliers, net takeup in the January to June period at 96,000 square meters (sq m) is already 60 percent of its full-year target.

“As flexibility and sustainability priorities take center stage, organizations are gravitating toward prime Grade A assets that reflect their values and future ambitions,” said Mike Davis, Colliers managing director for occupier services in Asia-Pacific.

“This flight to quality is reshaping the region’s office landscape, and we expect this momentum to build through [the second half of 2025] and beyond,” he added.

In their case, 70 percent of occupiers in the Philippines are taking up space for expansions and new setups, while 30 percent are relocating.

Looking closer, more than half of the demand is for office cuts with less than 1,000 sq m in space, while 36 percent of transactions involve those between 1,000 sq m and 3,000 sq m or one whole floor.