Prime PHL: Office occupancy in NCR to fall through 2027 — Business Mirror Report
- franjenunez7
- Mar 6
- 2 min read
The Philippine office market is poised for continued adjustment, with occupancy levels in the National Capital Region (NCR) expected to trend downward through 2027 as fresh supply enters the market.
In an article by BusinessMirror, real estate consultancy PRIME Philippines revealed that newly built office facilities scheduled for completion in 2026 and 2027 are likely to put downward pressure on overall office occupancy and lease rates in key Metro Manila business districts.
Fresh Office Supply Outpacing Demand Through 2027
According to BusinessMirror, office supply in Metro Manila is projected to increase by 1–2% annually, pushing total inventory above 16 million square meters by the end of 2027. The influx of new development is expected to exert pressure on occupancy levels as demand does not keep pace with the rising supply.
Prime Philippines estimates that approximately 328,000 square meters of office space is due to be delivered in 2026, followed by another 478,000 square meters in 2027 predominantly in key submarkets such as Bonifacio Global City (BGC), Ortigas, and Quezon City.
Structural Shifts in Office Demand
In the BusinessMirror coverage, Prime Philippines CEO Jet Yu highlighted a shift in developers’ playbooks as they reassess long-term strategies in response to evolving occupier behaviour and demographic trends.
Jet Yu noted that many developers are now focused on:
Revisiting long-term asset strategies
Raising liquidity and reducing debt
Targeting Gen Z and younger workforces, whose preferences are reshaping demand patterns
These trends reflect broader shifts within the Philippine property market, where office demand drivers are evolving alongside remote work models, hybrid setups, and sectoral shifts in occupier focus.
Exploring Growth Beyond Metro Manila
Despite the downward trend in NCR office occupancy, Prime Philippines also pointed to emerging demand in regional markets. Expansion by business process outsourcing (BPO) firms and corporate tenants is expected to buoy office take-up in areas outside Metro Manila, such as Cavite, Laguna, Iloilo, and Bacolod.
Prime’s report suggests that while traditional office hubs may face increasing vacancies, secondary cities and regional centers could attract new leasing activity thanks to cost advantages and growing economic dynamism.
What This Means for the 2026–2027 Office Market
The expectations outlined by BusinessMirror underscore the complex dynamics of the current office market cycle:
New supply is increasing faster than net absorption capacity.
Occupancy rates may ease through 2027 as office stock grows.
Demand migration toward regional markets could help mitigate some vacancy pressures.
Rather than indicating market weakness, these projections reflect a transition phase influenced by long-term structural changes, demographics, and occupier behaviour — consistent with broader narratives discussed across 2026 property market reports.
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