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Members of the press are given a walking tour of the Ubisoft Philippines state-of-the-art studio, at the their headquarters The Finance Centre, in Bonifacio Global City, (BGC) Taguig City, June 21, 2024. The company boasts a workplace with arcade and gaming areas and studio-wide esports tournament and spacious lounge and pantry that hopes to achieve an environment where creativity and tech meet to solve exciting challenges for its workers. Jonathan Cellona, ABS-CBN News

Article (news)

Raine Musñgi

ABS-CBN News

MANILA -- The Philippine office market is slowly stabilizing after the massive exit of Philippine Offshore Gaming Operators (POGOs), but the recovery remains uneven across Metro Manila, according to Colliers Philippines.Colliers Philippines Head of Research Joey Roi Bondoc said office vacancies in Metro Manila eased to around 19 percent in the first quarter of 2026, while transactions rose 12 percent year-on-year.“We’re starting to see some glimmers of hope for the office sector,” Bondoc said on ANC’s Market Edge.At the height of the POGO boom, offshore gaming firms accounted for roughly 10 percent of total leasable office space in Metro Manila. Their departure left landlords scrambling with millions of square meters of vacant space.Today, Colliers estimates vacant office stock across Metro Manila still stands at around 2.8 million square meters. But demand from business process outsourcing firms, global capability centers (GCCs), and shared services companies has helped cushion the blow.“The good news now is that BPOs continue to expand and occupy office space,” Bondoc said.The Philippines remains one of the world’s largest outsourcing hubs, with the IT-BPM industry projected to generate over $40 billion in revenue and employ around 1.9 million workers by end-2026, according to the IT and Business Process Association of the Philippines (IBPAP).Still, Bondoc acknowledged growing concerns over artificial intelligence and automation within the outsourcing industry.“That is a major concern for a lot of BPO companies,” he said, referring to the rapid advancement of AI technologies.Yet higher-value outsourcing operations appear to be offsetting some risks. Bondoc said global capability centers and shared services firms have been taking up significant office space not only in Metro Manila but also in Cebu and Pampanga.While Metro Manila vacancies remain elevated, prime business districts continue to outperform. Vacancy rates in Makati, Bonifacio Global City, and Ortigas Center currently range from 9 to 11 percent -- far healthier than the broader market average.But outside key CBDs, the situation remains more challenging.“When you go to other CBDs including the Bay Area and Alabang, vacancies would range from 30 percent to 40 percent,” Bondoc said.Colliers said regional cities are increasingly emerging as growth engines for the office market. In Davao, office vacancies are only around 6 to 7 percent, while Cebu’s office vacancy rate stands at approximately 17 percent -- considered healthy by industry standards.Developers are now aggressively expanding township and office projects in Cebu, Clark, Iloilo, Bacolod, and Davao to capture decentralization demand.“There are a lot of opportunities still outside of Metro Manila,” Bondoc said.<div> </div><div><iframe width="640" height="360" src="https://www.youtube.com/embed/cOev6dXYpt8?&amp;t=126s&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div>

The Philippines remains one of the world’s largest outsourcing hubs, with the IT-BPM industry projected to generate over $40 billion in revenue and employ around 1.9 million workers by end-2026.

The Philippines remains one of the world’s largest outsourcing hubs, with the IT-BPM industry projected to generate over $40 billion in revenue and employ around 1.9 million workers by end-2026.

POGO exit still hurts, but BPOs and AI firms fuel office market revival—Colliers PH

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POGO exit still hurts, but BPOs and AI firms fuel office market revival—Colliers PH

Raine Musñgi,

ABS-CBN News

Published May 29, 2026 02:55 PM PHT

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Updated May 29, 2026 05:34 PM PHT

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office market

property market

BPO

POGO

Colliers

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