MANILA, PHILIPPINES – Santos Knight Frank, a real estate services and advisory firm, said in a press statement that the Philippines’ office market has entered a new expansion cycle to fulfill the strategic needs of the IT-BPM sector. According to its latest report, the IT-BPM sector alone accounted for year-to-date absorption of 461,245 sqm.
Increased Development in the Provincial Markets
The IT-BPM sector’s “growth trajectory is becoming more diverse” with its expansion to areas other than Manila. Robinsons Land Corporation, for instance, “will add around 100,000 sqm of new office space by 2026” in Davao and Dumaguete.
Strong growth is anticipated in provincial areas, as developers shift from speculative builds to more secure, pre-committed build-to-suit (BTS) arrangements. This is evident in locations like Cebu, where large tenants collaborate with developers to customize office buildings to precise operational and security specifications. This strategy secures long-term occupancy and encourages the development of high-quality, modern facilities outside of the capital.
—Morgan McGilvray, Senior Director for Occupier Strategy and Solutions at SKF
Further, the Philippine Economic Zone Authority (PEZA) has “accredited 13 new and expansion projects from IT enterprises in various parts of the country” in the third quarter of 2025. Such government support increases the IT-BPM sector’s competitiveness, helping it attract foreign investments and expand into new markets so it can move into the next stage of growth.
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