Metro Manila new office supply drops 55% in 2025 as market recalibrates

Seven projects with 199,000sqm of new space were completed during the year.

Metro Manila’s office market is undergoing a period of recalibration, with new supply falling sharply in 2025, creating a temporary window for vacancy absorption, according to Savills.

Savills reported that total office completions reached 199,000 sq m across seven buildings in 2025, representing a 55% decline from the 448,000 sq m delivered in 2024. The consultancy said this slowdown in new handovers is helping ease pressure from elevated vacancy levels.

The new supply was largely concentrated in Quezon City and Bonifacio Global City (BGC), with three completions each. Savills noted that Quezon City accounted for about 76% of total additions, or 152,000 sq m, reinforcing its role as a key hub for IT-BPM expansion. In contrast, BGC added just 19,000 sq m, reflecting a shift toward smaller, boutique office developments.

Despite the moderation in supply, Savills highlighted a growing divergence in market performance. BGC continues to record the tightest vacancy rates in Metro Manila at around 8%, supporting modest rental growth. Meanwhile, the Manila Bay Area is facing significantly higher vacancy levels of nearly 34%, weighed down by the exit of offshore gaming operators.

Looking ahead, Savills cautioned that the market will face renewed pressure from a strong pipeline of over 450,000 sq m of office space scheduled for completion in 2026. Upcoming supply is expected to be concentrated in Quezon City, Greater Ortigas and the Bay Area, with the latter set to resume completions after a two-year delay.

While vacancy rates remain elevated, Savills said “flight-to-quality” trends among occupiers and investors are continuing to favour newer, premium and green-certified buildings, posing a challenge for older office stock.