(First of two parts)
Colliers Philippines’ latest Metro Manila survey underscores a decisive shift: return-to-office (RTO) is back in command, but market confidence remains fragile. Nearly half of respondents are now fully office-based, while hybrid adoption continues to rise—reinforcing the enduring value of well-designed, productivity-driven workplaces. Yet across sectors, caution is the prevailing theme. Two-thirds of occupiers plan to maintain their status quo footprints, signaling a wait-and-see stance amid geopolitical volatility.
Still, opportunities persist. Condominiums in key business hubs remain compelling, while lot-only investments outside Metro Manila continue to gain traction—highlighting a geographic diversification play. Developers, however, must move beyond traditional strategies and ramp up differentiation.
Retail tells a similar story of recalibration. Elevated transport costs are dampening mall visits, accelerating the need for immersive, omnichannel experiences that blend physical and digital shopping. Now is an ideal time to implement brick-and-click strategies and maximize every Filipino shopper’s retail budget.
The market is not in retreat—it is in transition. Clear winners here will be those who act early, invest smartly, and design for resilience in an increasingly challenging environment.
100% return-to-office dominates
Half of our respondents are currently working in a traditional office setup, slightly lower than the 57% recorded in our Q2 2025 survey. Meanwhile, about 44% are still implementing hybrid work arrangements, up from 40% from our previous survey.
In our view, having a well-designed physical office space will be key in encouraging workers to report to the office. This is also supported by our earlier survey results where majority of respondents said they are more productive in a traditional office setup.
Colliers Philippines believes that tenants and landlords should work together in fostering collaborative, productive, and inclusive workspaces. Encouraging more employees to RTO should be beneficial for the property market in general, and this is likely to have direct or tangential benefits to other segments, such as retail and residential.
With vacancies declining in key hubs such as Makati CBD, Fort Bonifacio, and Ortigas Center, Colliers Philippines believes that it is high time for developers to prop up marketing efforts for their sustainable and high-quality office towers located along the peripheries of key CBDs.
Majority to retain office footprint
Two-thirds of our respondents plan to remain in the status quo for the remainder of the year, neither rightsizing nor expanding their office footprint. Given the continued uncertainty stemming from the Middle East conflict, Colliers encourages both office occupiers and landlords to take a more proactive and forward-looking approach rather than adopt a wait-and-see stance.
In our view, refurbishing older office stock will likely be crucial for landlords to remain competitive in the market. Meanwhile, we encourage occupiers to implement long-term office space planning to better manage risk amid an unpredictable geopolitical and economic environment.
Colliers Philippines believes that office is regaining its anchor role in the leasing strategies of tenants and development plans of landlords. In today’s market, hesitation is not a strategy—adaptation is. Landlords must upgrade, occupiers must recalibrate, and both must align around flexibility, functionality, and future-ready design. Across office and residential segments, the winners will be those who act ahead of the curve and proactively reposition assets.
As we always highlight at Colliers Philippines, what we see now is not a market in decline, but one in deliberate transition. This is pretty understandable given the cyclical nature of Philippine property. Those who move early, move smart, and move decisively will ultimately define the next growth cycle of Metro Manila office market.
To be continued.
#PhilSTARPropertyFeature
#FeaturedStory
