Office leasing activity rebounds to pre-POGO levels in first half of 2025

The Philippine office market posted its strongest rebound in years in the first half of 2025, despite the complete exit of Philippine Offshore Gaming Operators (POGOs), according to real estate consultancy Leechiu Property Consultants (LPC).

Demand for office space reached 67 percent of the total take-up recorded in full-year 2024, a sign of growing confidence across sectors such as Information Technology and Business Process Management (IT-BPM), traditional industries, and select government agencies.

During its second-quarter briefing, LPC reported that IT-BPM firms led the market, accounting for 50 percent or 365,000 square meters of total demand. Traditional businesses followed closely at 48 percent (354,000 sqm), while government agencies occupied 21,000 sqm.

Metro Manila continued to dominate activity with 581,000 sqm of total space leased, equivalent to 79 percent of national demand. Within the capital, Bonifacio Global City remained a top destination with 146,000 sqm of deals. Provincial uptake reached 159,000 sqm, with Cebu leading at 81,000 sqm.

Net take-up for the period reached 271,000 sqm, surpassing half of LPC’s annual projection of 490,000 sqm.

“We are seeing contractions taper off,” said Mikko Barranda, LPC Director for Commercial Leasing. “These numbers indicate a healthy trajectory, even without POGO-related demand.”

LPC CEO David Leechiu described the trend as a significant milestone for the industry. “We have not seen this level of leasing activity since 2017. What’s remarkable is that these gains have been made without the influence of POGOs,” he said.

With leasing volumes rebounding and market fundamentals strengthening, LPC expressed cautious optimism for the remainder of 2025, while acknowledging uncertainties that may affect business sentiment in the latter half of the year.