Metro Manila faces 231,600 square metres of Grade A office space scheduled for delivery in the final quarter of 2026 after construction slippages left third-quarter handovers at just 16,900 square metres. The delivery pileup threatens to tip metropolitan vacancy past 20 percent before January.
Property data from Savills Philippines shows the fourth-quarter concentration accounts for roughly 70 percent of the 329,800 square metres projected for completion across all of 2026. Developers completed only 9 percent of the 183,400 square metres originally slated for handover between July and September.
Three developments slipped out of the third quarter: Yuchengco Centre, Offices at the Galleon, and SM North EDSA Tower 5. These join Southfield Center and Spectrum in a crowded fourth-quarter schedule that adds about 2.3 percent to the capital region’s total office stock in three months.
The supply arrives as tenant demand weakens. Metro Manila recorded negative net absorption of 23,900 square metres in the third quarter, down from positive take-up of 144,700 square metres in the second quarter. While gross leasing took up 118,200 square metres, tenants surrendered 142,100 square metres as business operators consolidated, relocated, or trimmed their operating floors.
Average Grade A monthly rents across Metro Manila still rose 0.5 percent quarter on quarter to 861.10 pesos per square metre, logging a third straight quarterly advance. Bonifacio Global City stood out as the sole major commercial district to discount space, with rents sliding 0.4 percent to 1,089.60 pesos per square metre.
Other districts pushed rates higher despite mounting vacancies.
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