METRO MANILA’S office developers are being urged to focus on flexible and cost-efficient office spaces as more multinational firms shift to hybrid work, according to property consultancy Colliers Philippines.
“Occupiers are increasingly focused on capital preservation, balance sheet flexibility, and reduced execution and delivery risk. As a result, operating expenditure (opex)-led workspace solutions where costs are spread predictably over time are gaining traction,” Melissa Mabanta, assistant manager for office service — landlord representation at Colliers, said in a report.
She noted that multinational companies are moving toward Grades A and B+ offices that prioritize flexibility, faster move-ins, and cost predictability, as firms’ planning cycles have shortened to between six and 18 months.
Colliers added that the rise of hybrid work has pushed occupiers to favor ready-to-occupy and built-to-suit offices.
“As the Philippine office market matures, value is increasingly defined not just by location or rental rates, but by speed to market, operational readiness, and risk mitigation,” Ms. Mabanta said.
Previously, office occupiers invested in longer lease terms and fit-outs, information technology infrastructure, and project management. In central business districts, fit-out costs typically range from P45,000 to P70,000 per square meter (sq.m.), Colliers said.
It also noted that challenges in traditional office leasing, such as design, permitting, procurement, and construction delays, have become a “major friction point” for occupiers.
“While Metro Manila vacancy rates remain elevated compared to pre-pandemic levels, leasing inquiries are increasingly driven by quality, readiness, and flexibility rather than sheer size,” Colliers said.
In the first nine months of 2025, Metro Manila’s office vacancy stood at 19.8%, Colliers said in its Third-Quarter Property Market Report.
Office vacancy in the region is projected to rise slightly to 19.9% in 2026, before declining steadily to 19.2% in 2028, the consultancy added.
In Metro Manila, traditional occupiers transacted an average of 830 sq.m. of space, while third-party operators and government tenants occupy about 1,500 sq.m., equivalent to roughly a whole floor. Shared services sector tenants occupy larger spaces of around 3,000 sq.m., or about two or more floors. — Beatriz Marie D. Cruz
