OVERVIEW
The 2H 2025 Regional Office Outlook by Savills Philippines provides insights into the performance of key regional office markets, including Cebu, Clark, Iloilo, Bacolod, and Davao. The report examines office supply, leasing demand, vacancy trends, rental performance, and market opportunities, helping occupiers, investors, developers, and landlords make informed real estate decisions.
KEY FINDINGS
- Regional office markets in the Philippines are recovering unevenly across key cities
- Demand is driven mainly by IT-BPM expansion and “flight-to-quality” leasing
- New supply delivery has been delayed in several cities, easing short-term vacancy pressure
- Cebu, Clark, Bacolod, and Davao remain key regional hubs, with Iloilo showing relatively stronger new supply delivery
KEY INSIGHTS
- Recovery is not synchronized across regional markets, with performance varying by city
- Tenants are consistently shifting toward modern, LEED/green-certified, higher-quality office spaces
- Supply delays in late 2025 are temporarily masking underlying absorption weakness in some hubs
- Regional markets remain highly sensitive to developer timing, financing conditions, and pre-commitment levels
MARKET IMPLICATIONS
- Expect a wave of delayed supply entering from 2026 onward, especially in Cebu and Davao
- Vacancy performance will remain city-specific rather than uniform nationwide
- Developers will continue to adopt a more cautious, pre-leasing-driven development approach
- Investors should prioritize well-connected, demand-backed regional office hubs, not speculative projects
FAQ
What is the 2H 2025 Regional Office Outlook?
It is a Savills Philippines research report that analyzes the performance of regional office markets across the Philippines during the second half of 2025.
Who should read this report?
Office occupiers, investors, developers, landlords, brokers, and businesses evaluating opportunities in regional commercial real estate markets.
What topics does the report cover?
The report covers office supply, leasing demand, vacancy rates, rental trends, and market performance across major regional business hubs, including Cebu, Clark, Iloilo, Bacolod, and Davao.
