OVERVIEW
The 4Q 2025 Metro Manila Office Briefing by Savills Philippines provides a year-end overview of Metro Manila's office market. The report covers leasing activity, vacancy rates, office supply, rental performance, and key market trends across major business districts, helping occupiers, investors, developers, and landlords make informed real estate decisions.
KEY FINDINGS
- Metro Manila office vacancy remains elevated but has started to stabilize toward year-end 2025
- Leasing demand is supported by IT-BPM, traditional firms, and relocation activity
- Supply additions continue to outpace absorption, keeping vacancy levels high
- Demand is strongest in Makati CBD and BGC, with weaker performance in secondary districts
KEY INSIGHTS
- The market is entering a phase of stabilization rather than strong recovery
- Most leasing activity comes from flight-to-quality moves and consolidation, not major expansion
- Tenants continue to prioritize modern, efficient, PEZA-ready, and well-located Grade A buildings
- Incentives remain a key tool for landlords due to persistent competition
MARKET IMPLICATIONS
- Vacancy is expected to hover near ~20% in the near term as supply remains elevated
- Prime CBD assets will continue to outperform older and fringe office stock
- Landlords will rely heavily on flexible lease terms and concessions to secure tenants
- The market is shifting toward a quality-driven, not quantity-driven, leasing environment
FAQ
What is the 4Q 2025 Metro Manila Office Briefing?
It is a quarterly research report by Savills Philippines that analyzes Metro Manila's office market, including leasing activity, vacancy rates, office supply, rental trends, and overall market performance.
Who should read this report?
Office occupiers, investors, developers, landlords, brokers, and businesses looking for the latest insights into the Metro Manila office market.
What topics does the report cover?
The report covers office demand, vacancy rates, new office supply, rental performance, and market trends across Metro Manila's key business districts.
