Philippines Office Market Overview for Q1 2023

In Q1 2023, the Philippine office market showed several significant trends and developments:

  1. Average Prime & Grade A rents in Metro Manila saw a slight year-on-year decline of 0.44%, despite a 74% year-on-year growth in net absorption in 2022. Total completions in Q1 2023 were recorded at 0.09 million sq.m, bringing the estimated total Prime and Grade ‘A’ office supply in Metro Manila to approximately 9.23 million sq.m​​.
  2. The Philippine Gross Domestic Product (GDP) grew by 6.4% in Q1 2023, which although lower than previous rates, still beat most analysts’ forecasts. Financial and insurance activities and wholesale and retail trade were the main contributors to this growth​.
  3. The Metro Manila office market posted positive net take-up for the fifth consecutive quarter, and office vacancy marginally improved to 18.7% in Q1 2023 from 18.8% in Q4 2022. Net take-up in 2023 was expected to reach 116,400 square meters, a marginal increase from the 110,500 square meters recorded in 2022​.
  4. By the end of 2023, it is expected that the Philippines will be setting new standards for the office market’s growth. The last quarter of 2022 ended with an improvement in the Philippines’ office market. Manila was reported to be the third cheapest office market in Asia and the Pacific regions with prime offices in Metro Manila priced at PHP1,750 (USD32.46) per square meter at most per year​.
  5. The Asia Pacific 2023 Office outlook report by Cushman and Wakefield projected a 50% increase in the demand for office spaces in Metro Manila by the end of 2023.
  6. Ayala Land, one of the Philippines’ leading real estate developers, announced its exceptional financial results for Q1 2023, showing a promising future. Net income surged by 42% to P4.5 billion, and consolidated revenues rose by 26% to P30.9 billion. The company’s growth across various business segments indicates its resilience and adaptability in capturing demand across multiple customer segments​.
  7. Ayala Land and other Ayala companies have achieved remarkable success in the prestigious Asia’s Best Companies 2023 poll conducted by FinanceAsia, indicating their strong performance and commitment to excellence and sustainable business practices​​.

In conclusion, the Q1 2023 Philippine office market demonstrated a combination of resilience, growth, and potential, despite the challenges of the ongoing economic recovery. Major players like Ayala Land are optimistic about their growth prospects for the remainder of the year.


  1. Cushman & Wakefield. (2023). Philippines MarketBeat Office Q1 2023 Report. Retrieved from
  2. Colliers. (2023). Philippines Office Market Report Q1 2023. Retrieved from
  3. Asia Property Awards. (2023). Philippines Office Market Q1 2023. Retrieved from
  4. Manila Bulletin. (2023). Ayala Land Posts Robust Q1 2023 Results. Retrieved from

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