MAKATI CITY — Nearly seven years after Administrative Order No. 18 redirected ecozone development toward the countryside, robust demand for PEZA-accredited office spaces in Makati and other major business districts continues to demonstrate the lasting appeal of these locations among investors and IT-BPM companies. According to property consultancy Colliers, Metro Manila had approximately 1.46 million square meters of available PEZA-certified office space as of the first quarter of 2026, accounting for nearly half of the region’s total PEZA office inventory. Although a significant portion of the remaining compliant space is now located outside the traditional business centers, this trend further emphasizes the continued preference for Makati CBD, Ortigas CBD, and Fort Bonifacio as premier destinations for businesses looking to establish or expand their presence.
Prime Business Districts Continue to Command Strong Demand
The outlook for PEZA-compliant office developments remains encouraging, with about 41 percent, or roughly 711,000 square meters, of Metro Manila’s future office inventory already PEZA-proclaimed. While no new PEZA-certified buildings are expected in Makati CBD and Ortigas Center in the near term, the existing accredited properties in these districts remain highly attractive to locators seeking fiscal incentives and prestigious business addresses. The limited availability of space in these prime locations reflects their consistently high occupancy rates and enduring desirability among leading corporations. For larger occupiers requiring at least 5,000 square meters, the relatively scarce options in core districts further highlight the importance of securing office space early, enabling companies to support their long-term operational stability and expansion plans.
Opportunities for Policy Enhancement and Continued Investment
Colliers noted that AO 18 has played an important role in promoting development outside Metro Manila while also suggesting that refinements to the policy could further strengthen the capital region’s competitiveness. “There may be room for a more calibrated approach, one that supports regional growth while still accommodating strategic, high-value, or space-constrained investments in Metro Manila,” said Kevin Jara, Colliers director and head of office services, tenant representation. Such discussions create opportunities for policymakers to further optimize investment strategies, ensuring the Philippines remains an attractive destination for both domestic and international investors. Under the CREATE MORE framework’s targeted and performance-based incentives, revisiting existing policies could pave the way for even greater investment activity and economic expansion.
Strategic Advantages for Tenants and Property Owners
For PEZA-registered occupiers, the current market environment encourages more strategic planning, including exploring secondary CBDs with larger PEZA inventories and securing pre-leasing agreements ahead of time. At the same time, landlords are well-positioned to benefit from sustained market demand by upgrading and repositioning older PEZA-accredited properties in prime districts, enhancing both asset value and tenant appeal. With approximately 70 percent of IT-BPM office transactions still taking place in Metro Manila during the first quarter of 2026, the region continues to serve as the country’s primary gateway for businesses entering or expanding in the Philippines. This trend reflects strong confidence in Metro Manila’s economic resilience, competitiveness, and long-term growth prospects.
