Discerning tenants seek offices delivering prestige and performance. This “flight to quality” approach sees premier buildings across Metro Manila attracting top-tier companies, including multinational corporations, large Filipino firms, and major outsourcing players in the Philippines.
Colliers Philippines believes that this trend of occupying premier and sustainable office spaces will be for the long haul. Occupants aggressively advancing ESG initiatives find these high-quality office towers viable for their operations and branding efforts. Landlords, meanwhile, will likely unlock leasing opportunities for these sustainable office spaces being offered at premium rents located in major business districts.
Catering to tenants’ evolving preferences
As the office market evolves, developers are placing greater emphasis on sustainability and operational reliability. The need for “always-on” operations, driven by the IT-BPM sector and the growing Environmental, Social, and Governance (ESG) commitments, has made sustainable office spaces more essential than ever. To address these changing expectations, developers should integrate ESG principles early in the design stage by prioritizing hybrid energy systems, including solar generation and backup power, to reduce reliance on unstable energy sources while ensuring uninterrupted building operations. Integrating smart building technologies, microgrid capabilities, and clear contingency plans can also improve efficiency, strengthen business continuity, and address tenants’ growing concerns regarding reliability and operational risk.
Why tenants should occupy sustainable office space
Occupiers are becoming strategic and data-driven when choosing their next office location. They are no longer just focused on location and rental costs; instead, they evaluate spaces based on the building’s capability to support business continuity, manage operational risks, and how it aligns with ESG commitments. This shift reflects a broader understanding of how real estate decisions can directly impact the overall business performance. In choosing the right office space, occupying sustainable buildings offers key advantages: reduced downtime risks and better cost control.
Tenants are advised to prioritize buildings with resilient infrastructure, such as hybrid energy systems and off-grid capabilities, to minimize operational disruptions. Reliable power, strong connectivity, and robust backup systems are essential, particularly for industries requiring 24/7 uptime. Evaluating ESG certifications and energy-efficient features are also important, as these contribute to sustainability goals while supporting long-term cost management.
ESG in the Office
Across the Philippine office market, ESG has become a concrete occupier requirement rather than an added bonus, especially among multinational corporations, shared service centers, and large BPOs. Accenture, one of the country’s major IT-BPM employers, reported that it achieved 100% renewable electricity in its facilities in 2023 and maintained this in fiscal year 2024, while also receiving approval for science-based net-zero greenhouse gas targets. Concentrix has similarly framed sustainability around its 2030 ESG goals, covering climate action, culture, innovation, community impact, and ethical business. TELUS Digital, which operates seven sites in Metro Manila and two in Iloilo, embeds ESG through impact sourcing, environmental sustainability, and community-oriented social impact programs.
Financial shared service and corporate occupiers are also moving in the same direction: JPMorgan Chase’s 25-storey Taguig office building shifted to 100% renewable energy, and it is estimated to avoid carbon dioxide emissions equivalent to around 4,700 cars annually. For landlords, these initiatives signal rising demand for green-certification units, energy-efficient buildings, waste and water management systems, and transparent reporting of data that helps occupiers meet global ESG standards.
Sustainable office towers to account for 57% of new supply
Colliers believes that landlords should maximize wellness features in their buildings and obtain certifications such as LEED (Leadership in Energy and Environmental Design), WELL, EDGE (Excellence in Design for Greater Efficiencies), and BERDE (Building for Ecologically Responsive Design Excellence). Office towers with secured green building certifications will likely account for 57% of new office supply from 2026 to 2029. Among the sustainable office buildings likely to be completed during the period include McKinley Center Two in Makati CBD, Amani Tower in Fort Bonifacio, DD Meridian Tower in the Bay Area, Tryne Enterprise Plaza West Tower in Arca South, Araneta Cyberpark Tower 4 in Araneta Center, and SM North Edsa Towers 4 and 5 in Quezon City North.
At present, the LEED Platinum-certified Makati Commerce Tower impresses with its wellness focus. The Podium West Tower offers premium workspaces with retail access in Ortigas. Sennett Corporate Center rises as a new BGC business landmark. LEED Gold NEX 54 delivers cutting-edge spaces in Mandaluyong. DD Meridian Tower, defining the Pasay City skyline, provides large, efficient floor plates.
Completing the narrative is AXON Ayala, formerly the TP Center, whose renovation proves that strategic upgrades create high-value workplaces.
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