Uncertain PEZA proclamation timelines may affect office site selection in Metro Manila: Colliers
Colliers Philippines warns that unpredictable government timelines for Philippine Economic Zone Authority proclamations could influence office site selection in Metro Manila. About 280,000 sq.m. of upcoming office space is awaiting PEZA status, with 106,000 sq.m. due for completion in 2026 and 174,0
Uncertainty over the timing of government proclamations for economic zone status could affect future office site-selection decisions in Metro Manila, particularly among companies seeking fiscal incentives, according to property consultancy Colliers Philippines.
Colliers Philippines Director and Head for Office Services in Tenant Representation Kevin Jara said developers continue to pursue Philippine Economic Zone Authority (PEZA) status for their office buildings, although the timing of presidential proclamations remains difficult to predict. “In the next five quarters, we are expecting 280,000 [sq.m.] hopefully to become PEZA. We actually don’t have a firm visibility [on] when the PEZA proclamations come out [and] reach the Office of the President,” he said during the consultancy’s third-quarter market briefing on Oct. 27.
Colliers identified about 280,000 square metres (sq.m.) of upcoming office space in developments with existing PEZA proclamations or applications still undergoing processing through 2027. Of this, about 106,000 sq.m. is scheduled for completion in 2026 and another 174,000 sq.m. in 2027. Metro Manila also has approximately 1.5 million sq.m. of available PEZA-accredited office space, while about 570,000 sq.m. is undergoing application or processing, according to Colliers.
The developments identified by the consultancy include SM City North EDSA Towers 4 and 5 in Quezon City, Six E-Com Center in the Bay Area, The Yuchengco Centre in Makati, W Sixth in Bonifacio Global City, Bamberton Center, and Arca South Corporate Center Towers 1 and 2. PEZA status is an important consideration for information technology and business process management (IT-BPM) companies and global capability centres (GCCs) seeking office locations where their operations may qualify for fiscal incentives. Mr Jara identified Ayala Land, Inc.’s Arca South estate as a potential location for business process outsourcing expansion, citing its connectivity to major transport infrastructure, including the planned Metro Manila Subway.
Metro Manila accounts for 88 per cent of the country’s GCC office footprint, while leasing activity by GCCs increased 67 per cent in 2025, supported by expansions of existing operations, according to Colliers. The uncertainty surrounding PEZA proclamations comes as Metro Manila’s office market continues to face subdued demand and elevated vacancies. Colliers lowered its forecast for new office completions in 2026 to 247,000 sq.m. from an earlier projection of 505,000 sq.m., reflecting deferred project completions as developers adjust their supply pipelines to market conditions.
Metro Manila’s overall office vacancy rate stood at 19.5 per cent in the third quarter of 2026, with total office stock approaching 15 million sq.m. Net take-up reached 125,000 sq.m. in the first nine months of the year, as geopolitical and economic uncertainties weighed on occupiers’ willingness to commit to additional office space. Mr Jara said operating costs, financing conditions, and broader economic uncertainty continue to influence leasing decisions. “So what we’re seeing is a more cautious market. [The number one enemy] really is uncertainty,” he said.
