Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

Office MarketBeat Report

Claro Cordero Jr. • 06/02/2024


The Philippine economy grew by 5.6% in Q4 2024, bringing the full-year 2023 GDP growth rate to 5.6% due to better-than-expected growth in consumer spending and strong manufacturing output. Headline inflation rate further eased to 3.9% in December-2023, bringing thew 2023 average inflation rate to 6.0%, still higher than the 2.0% to 4.0% target of the BSP.

For 2024, the government projects the country’s economy to grow by 6.5% to 7.5% on back of the sustained remittance inflows from Overseas Filipino Workers, the expected increase in demand for IT-BPM sectors, and the continued recovery of the tourism sector. The country’s growth is expected to be driven by the slowdown in the pace of price gains, as further near-term cuts by the BSP remain distant while close monitoring of inflation expectations and second-round effects. The continued recovery of the local economy will be further supported by falling oil prices, as well as increased demand for Philippine exports as supply chain bottleneck continues to ease up, while supply-side concerns will be exacerbated by the ongoing strong El Nino and geopolitical and trade tensions.


Overall Prime and Grade ‘A’ office vacancies decreased by 58-bps in Q4 2023, with the vacancy figure closing at 16.26% from the reported vacancy of 16.84% in Q3 2023. An absorption figure of roughly 0.11 million sqm of office space was recorded in the quarter, the highest recorded absorption figure since 4Q 2021, which brings the net absorption for 2023 to over 0.23 million sqm.

By end-Q4 2023, over 93,000 sqm of office space has been added to the supply bringing the overall stock of Prime and Grade ‘A’ office space in Metro Manila to roughly 9.5 million sqm. This brings the year-to-date completion for 2023 to roughly 0.34 million sqm, which is approximately 64% of the total projected completions for 2023. The improvement in the timing of development completions in the market is suggestive of the renewed leasing activity in the market.

However, overall vacancies in Metro Manila is projected to increase in the coming quarters due to the large volume of upcoming developments that are expected to be completed in the first half of 2024, as well as the effect of the implementation of the amendments to the CREATE Bill that will allow for companies belonging in the IT-BPM sector to implement more flexible work arrangements.


As office vacancies remain high in Metro Manila, majority of the landlords of Prime and Grade ‘A’ office spaces have kept their headline rates steady. However, some landlords have posted a slightly lower headline rent for their office spaces by end-Q4 2023, bringing the average asking rent of Prime and Grade ‘A’ office space to PHP 1,023 / sqm / month. This figure is a 1.8% decrease QoQ from the previous quarter’s rent of PHP 1,042 / sqm / month and a 1.5% decrease YoY from the reported rent of PHP 1,038 / sqm / month in the same quarter the previous year. Despite the decrease in headline rates, the continued increase in the net absorption figures is still indicative of the continued, albeit slow, recovery of the office real estate market in Metro Manila.


  • Persistent global economic downturn – Despite inflation rates cooling down, global interest rates will remain elevated (even after approximating their peak levels). As a result, the return to pre-pandemic global demand for office spaces from traditional sources remains distant. On the other hand, demand for more outsourcing activities will stimulate occupier demand, albeit at a lower growth rate, which will likely improve the overall market vacancy rates in established CBDs
  • Government support sought to aid faster market recovery – The current confusion on the new legislation allowing remote work schemes must be clarified, as this will further stall expansion decisions of IT-BPM companies. These future growth plans will stimulate office space absorption in the local market.
  • Heightened demand for green developments – The demand for sustainable construction practices and property management is taking shape as large corporate occupiers simultaneously chart their long-term real estate strategies. The demand for high-quality developments will further highlight the demand for highly-flexible building systems and sustainable property management practices as effective ways to ensure healthy occupier demand while future-proofing commercial real estate developments.


card image
Research • Economy

Southeast Asia Outlook 2024: Opportunity Beckons

Southeast Asia foresees strong economic growth in 2024, with most major economies expected to accelerate despite challenges like inflation and geopolitical tensions. 
Xian Yang Wong • 02/04/2024
Philippine Property Market News (January 2020)

Philippines Property Market News

Our January and February 2024 edition of the report provides the latest updates in the Philippine commercial real estate industry as well as insights on the local sectors.
Claro Cordero Jr. • 22/03/2024
Office Fit Out Cost Guide 2024
Insights • Workplace

Office Fit Out Cost Guide

An office fit out refers to the process of designing and constructing an office space to meet the specific needs of the occupier. This can include everything from furniture and equipment to mechanical and electrical systems.
Dominic Brown • 19/03/2024
main streets across the world 2023

Main Streets Across the World 2023

In this 33rd edition of Main Streets Across the World, we’ll explore the near-term outlook for the retail sector; headline rent and ranking changes for best-in-class urban locations across the world; key indicators and global main street rankings; and key trends to watch such as the cost-of-living crunch, e-commerce and more.
Dominic Brown • 21/11/2023
Reworking the office
Research • Workplace

REWORKING the Office Asia Pacific

Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.
Anshul Jain • 03/11/2023
Rethinking the office sector
Research • Workplace

Rethinking the office sector in Asia Pacific

Our report takes a deeper dive into the underlying dynamics and drivers across The APAC region’s major markets and provides a roadmap for asset optimisation.
How Global Brands Are Shaping the Metro Manila Retailer Landscape 2021

How Global Brands Are Shaping the Metro Manila Retailer Landscape 2021

The COVID-19 crisis has upended businesses globally, but it has been especially tough in the retail segment as the implementation of various containment measures restricts activities in the industry.
Claro Cordero Jr. • 28/01/2022
COVID-19 Real Estate Developer Sentiment Survey Second Edition
Research • Investment / Capital Markets

COVID-19 Real Estate Developer Sentiment Survey Second Edition

The COVID-19 Real Estate Developer Sentiment Survey Second Edition seeks to gauge the changes in the real estate developers’ viewpoint on the recovery prospects of the economy and the real estate sector as uncertainties remain, more than a year after the onset of COVID-19 pandemic in the Philippines when the first issue of the survey was released.
Claro Cordero Jr. • 20/08/2021
Filipinas with the Biggest Hearts

Filipinas with the Biggest Hearts

Jhoan Ayos and Theresa “Tere” Benitez from the Manila-based Portfolio Service Center for Asia Pacific are perfect examples of Filipinas who generously extend their hands in service of those who need help.
Filipinas who mean business

Filipinas Who Mean Business

Let’s take a look at the story of some of the womentrepreneurs of Cushman & Wakefield Philippines.
Philippine Industrial Market Spotlight

Philippine Industrial Market Spotlight

As the battle with the effects of pandemic-induced global uncertainties continues, we examine the performance and prospects of growth that are presented to the Philippines’ industrial segment.
Claro Cordero Jr. • 27/01/2021
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All