Office space sector shows signs of recovery  

Metro Manila’s office sector is showing clear signs of recovery in 2025, with rising take-up, steady new supply, and stable lease rates pointing to renewed confidence in the market, according to a new report.

Net absorption reached 192,000 square meters (sq. m.) in the first half and could hit 400,000 sq. m. by year-end, marking the strongest demand since 2019, real estate consultancy Santos Knight Frank (SKF) said in its first-half 2025 report.

“This is shaping up to be the best year for the office market post-pandemic. We’re seeing real momentum again in take-up and expansions,” SKF senior director of occupier strategy Morgan McGilvray told a briefing on Monday.

Developers delivered 160,000 sq. m. of new Grade A and Prime office space in the first half, pushing total stock in Metro Manila to 9 million sq. m. from 3.6 million sq. m. in 2015, effectively tripling over the past decade.

An additional 400,000 sq. m. is expected in the second half, bringing full-year completions to half a million sqm. This includes projects conceptualized during the pandemic, most of which are expected to be completed by 2030, closing out the COVID-era pipeline.