Manila Class A Office Market

TL;DR

• World's deepest English-language BPO talent base.
• Trophy product in BGC trades at PHP 1,500-1,900/sqm/month.
• POGO tenant exits drove vacancy up post-2022.
• PEZA tax-incentive regime structurally underwrites BPO tenancy.

Overview

Manila is Asia's BPO capital — anchored by the world's deepest English-language call-centre and shared-services tenancy. Makati CBD, BGC (Bonifacio Global City), and Ortigas anchor the trophy tier. POGO (online gaming) tenant exit drove vacancy upward post-2022.

Market snapshot

Composite of Q1 2026 broker market reports for Manila.

Lease norms

Net leases. 3-5 year terms with renewal options standard. Free rent of 4-9 months on a 5-year deal.

Transit & access

LRT-1, LRT-2, MRT-3, plus the new MRT-7 and PNR. Manila Metro Rail Transit System (MMRT) is structurally under-capacity. NAIA airport connected via bus and the future MRT-7 extension.

Tax

25% Philippine corporate income tax. 20% reduced rate for small companies. PEZA registration provides 4-7 year income tax holiday plus 5% gross income tax in lieu of all national and local taxes for qualifying export-oriented activities.

Talent

Deepest English-language BPO talent in Asia. Strong feed from University of the Philippines, Ateneo de Manila, De La Salle, and a deep network of universities. Excellent neutral English accent supports North American customer-facing operations.

Notable Class A buildings

• Shangri-La at the Fort · BGC — Mixed-use trophy.
• Ayala Triangle Tower 2 · Makati CBD — Ayala Land trophy facing Ayala Triangle Gardens.
• W Fifth Avenue · BGC — Mixed-use BGC trophy with luxury hotel base.
• The Estancia at Capitol Commons · Ortigas — Ortigas Land's mixed-use trophy with retail and residential.
• Net Park BGC · BGC — Net Group PEZA-registered BPO-tilted Class A.

Class A submarkets in Manila

• Bonifacio Global City (BGC) — Master-planned trophy core. (trophy)
• Makati CBD — Established financial trophy core. (trophy)
• Ortigas Center — Mid-CBD trophy and back-office hub. (prime)
• Alabang (Filinvest City) — Southern trophy and BPO belt. (prime)
• Quezon City & Eastwood — Northern BPO and tech corridor. (established)

Manila deep-dives

• Rents and incentives — What does Class A rent cost and what concessions are typical?
• Sublease market — How deep is sublease">sublease availability and how does it price?
• ESG and LEED stock — How much certified stock exists and what premium does it command?
• Transit and commute — Which submarkets have the strongest transit access?
• Talent and salaries — What does the white-collar talent pool look like and how is it priced?
• Fit-out costs — What does a Class A fit-out">fit-out cost per square foot?
• Flex vs lease — When does premium coworking beat a traditional lease?
• Taxes and incentives — What corporate, occupancy, and property taxes apply?
• Neighborhoods overview — Which Class A submarkets exist and how do they compare?
• Notable buildings — Which trophy assets define the market?
• Class A vs Class B — What is the spread between Class A and Class B and why?
• Leasing conventions — What lease structures, terms, and concessions are normal?
• Expansion checklist — What is the operational checklist for opening here?
• Relocation guide — How do you move into this market from another city?
• Frequently asked questions — Quick answers to the questions occupiers ask most.
• Operating expenses — What service charges, OpEx, and pass-throughs apply on top of rent?
• Growth and availability — How tight is current availability and what does the pipeline look like?
• Sustainability pathways — How do tenants land net-zero or science-based-target leases here?
• Hybrid work policy — How are hybrid policies shaping office demand here?
• Security and redundancy — What security, power, and connectivity redundancy are standard?
• Lab and R&D space — What does R&D-grade or wet-lab space look like in this market?
• Brand experience — How do trophy buildings function as brand experiences and showpieces?
• Fund strategy and flag — Which submarkets carry the strongest investor flag for funds?
• Exit and renewal — How do you handle a Class A renewal or exit cleanly here?
• Market cycle position — Where is this Class A market in its cycle right now?

Manila — frequently compared

• Manila vs Singapore — SEA HQ shortlist.
• Manila vs Hong Kong — SEA HQ shortlist.
• Manila vs Bangkok — SEA HQ shortlist.
• Manila vs Jakarta — SEA HQ shortlist.
• Manila vs Ho Chi Minh City — SEA HQ shortlist.

Frequently asked questions

What is PEZA?

Philippine Economic Zone Authority — registered IT/BPO tenants in PEZA-designated buildings receive an income tax holiday (4-7 years) followed by a 5% gross income tax. Material for BPO tenant decisions; not all Class A buildings have PEZA designation.

What was POGO?

Philippine Offshore Gaming Operators — predominantly China-facing online gaming platforms operating from Manila. Government policy phased out POGO operations by 2024, removing a meaningful share of office occupancy.

What is the BGC versus Makati dynamic?

BGC is the modern master-planned trophy district with deeper Class A inventory and better walkability; Makati CBD remains the deepest financial-services tenant cluster.