Office leasing hits post-POGO high in H1 2025

The Philippine office leasing market maintained its robust momentum in the first half of 2025, with demand already reaching 67% of the full-year total recorded in 2024—despite the exit of Philippine Offshore Gaming Operators (POGOs), real estate advisory firm Leechiu Property Consultants (LPC) reported last week.

“Demand has been strong for the first half of the year. We believe it will continue,” said Mikko Barranda, LPC Director for Commercial Leasing, during the presentation of the firm’s Q2 2025 Philippine Property Market Report in Makati City. “We never know what will happen, but we are optimistic.”

The Information Technology and Business Process Management (IT-BPM) sector drove the market, accounting for 50% of total leasing activity or about 365,000 square meters, followed closely by traditional industries with 354,000 sqm (48%). Government agencies made up the remaining 21,000 sqm.

Metro Manila led the charge, contributing 79% (581,000 sqm) of overall demand. Bonifacio Global City emerged as the top Metro Manila submarket with 146,000 sqm. Outside the capital, provincial demand reached 159,000 sqm (21%), led by Cebu with 81,000 sqm.

Net take-up reached 271,000 sqm—exceeding 55% of LPC’s 2025 year-end forecast of 490,000 sqm—indicating a strong recovery despite the absence of POGOs.

“Contractions are tapering off,” Barranda said. “We’re now seeing net take-up levels approach our full-year projections as early as midyear.”

LPC Chief Executive Officer David Leechiu described the leasing surge as unprecedented since 2017.

“We’re all shocked at the level of leasing activity in the first six months—it’s the highest we’ve seen since 2017, even without the POGO steroid factor,” Leechiu said.

He emphasized that the current demand reflects a more sustainable growth pattern driven by core sectors like IT-BPM and traditional businesses, rather than dependence on POGOs.