IT-BPM sector drives stability in the Philippine office market: LPC
MAKATI, PHILIPPINES — The Philippine office market is expected to remain steady in 2025, with the outsourcing industry once again emerging as the backbone of demand, according to the Quarter 3 of 2025 property market report by Leechiu Property Consultants (LPC).
Outsourcing anchors demand amid shifting market conditions
Total office demand reached 966,000 square meters so far this year, representing 88% of the whole year’s level for 2024, according to Leechiu Property Consultants, which reflected continued tenant confidence as well as the market’s ability to adapt.
At the heart of this stability is the information technology and business process management (IT-BPM) sector, which continues to serve as the country’s growth anchor. The sector accounted for 45% of total demand, largely driven by the expansion of global capability centers and third-party outsourcing firms across both Metro Manila and key provincial hubs.
“The first three quarters of 2025 show that the office market continues to hold its ground—as long as demand remains stable and contractions stay manageable,” said Edward Gador, Associate Director for Commercial Leasing at LPC, in a press release shared to Outsource Accelerator.
The findings highlight how the outsourcing industry continues to provide a reliable foundation for the property market, especially as other sectors recalibrate their strategies amid evolving global trends and the decline in the influence of the POGO sector.
“What we’re seeing is a more sustained and resilient recovery, driven primarily by the IT-BPM sector and traditional office occupiers,” he added.
Provincial growth led by IT-BPM expansion
Beyond Metro Manila, Cebu remains a standout, accounting for nearly 60% of provincial demand, according to LPC. The city’s IT Park is nearly fully occupied, registering only a 6% vacancy rate, a strong indicator of continued confidence from outsourcing firms and global enterprises setting up operations outside the capital.
Other important emerging cities, such as Davao and Iloilo, have resumed growth from IT-BPM companies, indicating that the decentralization of the outsourcing industry continues with the development of regional business hubs within the Visayas and Mindanao regions.
Bonifacio Global City (BGC) in Metro Manila experienced the largest office uptake, with 183,000 square meters, primarily driven by the expansion of IT-BPM. Quezon City and the Ortigas-Mandaluyong corridor, on the other hand, accounted for a combined 271,000 square meters in office transactions, as companies sought larger yet cost-efficient spaces.
The latest report by LPC highlights an important point. While driving away office demand, further growth in the IT-BPM sector is shaping the next cycle of regional development, confirming the Philippines’ position as an outsourcing player poised for long-lasting sustainability.
