OVERVIEW
The 1Q 2026 Metro Manila Office Briefing by Savills Philippines provides an overview of the office market, highlighting leasing activity, vacancy rates, new supply, rental trends, and the performance of key business districts. The report offers market insights to help occupiers, investors, landlords, and developers make informed real estate decisions.
KEY FINDINGS
- Metro Manila office vacancy remains elevated but is stabilizing with steady leasing activity
- Demand is mainly driven by traditional firms, IT-BPM, and selective expansions
- New supply remains limited in Q1 2026, helping prevent further sharp vacancy increases
KEY INSIGHTS
- Market recovery is selective, not broad-based
- Tenants are prioritizing quality, location, and efficiency over size expansion
- Leasing activity is driven more by relocations and consolidation than net expansion
MARKET IMPLICATIONS
- Vacancy may stay around ~19–20% in the near term due to ongoing supply and soft demand
- Prime and well-located Grade A buildings will remain more resilient
- Landlords will rely on incentives and flexible leasing terms to attract tenants
- Competition will intensify for high-quality, PEZA-ready office space
FAQ
What is the 1Q 2026 Metro Manila Office Briefing?
It is a quarterly research report by Savills Philippines that analyzes Metro Manila's office market, including leasing activity, vacancy, supply, and rental trends.
Who should read this report?
Office occupiers, investors, developers, landlords, brokers, and businesses seeking 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.
