Office market shows early-year resilience Colliers - BusinessWorld Online

STOCK PHOTO | Image by Peoplecreations from Magnific DESPITE the controversies that emerged late in 2025, Metro Manila’s office market entered 2026 on relatively steady footing.Leasing decisions continued, landlords largely held their ground, and the sector showed that resilience now means recalibrating amid uncertainty rather than simply recovering from it.

For Colliers, the months ahead are less a time for hesitation than a window for occupiers and landlords to act with intent.RESILIENCE DESPITE LATE-2025 CHALLENGESThe first quarter of 2026 showed that Metro Manila’s office market is on firmer ground than many expected after the disruptions and concerns that surfaced late last year, including the flood control controversy.

Traditional firms continued to support demand, followed by third-party outsourcing firms and shared services.Colliers recorded 193,000 square meters of office transactions in Metro Manila during the quarter, up 12% year over year, indicating that occupiers are still taking up office space.

This has kept vacancy broadly stable and rents largely unchanged across major submarkets.The countryside, however, posted a more subdued performance, with demand falling 32% year over year and Iloilo overtaking Cebu, as the latter continues to face limited available office space in its information technology (IT) and business parks.

In our view, provincial office demand may become more geographically diverse in the months ahead, as occupiers explore alternative locations such as Pampanga, Bacolod, and Iloilo, where a substantial amount of space remains available.‘CONTROLLED’ SUPPLY LEVELS TO CUSHION CRISIS IMPACTWhile no new office completions were recorded in Q1 2026, Colliers expects around 505,000 square meters of new supply to be delivered by year-end.

Beyond 2026, new supply is projected to remain at more controlled levels, averaging about 308,000 square meters annually over the next four years.This more me...