Alabang first-quarter office demand plunges

THE Alabang central business district (CBD) in Muntinlupa City posted a sharp reversal in office leasing activity in the first quarter, with net take-up plummeting to 5,800 square meters after leading expansion activity in the previous quarter, according to Savills Philippines.

The consultancy said the drop from 32,200 square meters in the last quarter of 2025 marks a significant shift in momentum for the district, which had recorded the highest net take-up among Metro Manila office hubs.

“Alabang CBD experienced a sharp decline in activity this period, a stark contrast to its performance as the district with the highest net take-up last quarter,” Savills said in its latest office market report.

Despite the slowdown in demand, vacancy rates in Alabang improved slightly to 31.3% from 31.8% quarter on quarter. Savills attributed the marginal improvement to modest net absorption, which helped offset space returns and downsizing activity.

The property consultancy noted that Alabang continues to favor tenants, with landlords facing a “temporary saturation” of Grade A office space.

Alabang’s total office stock stands at about 670,000 square meters, with about 16,000 square meters of new supply expected between 2026 and 2030.

Average asking rents edged higher to P575.50 per square meter from P572 in the previous quarter.

“This marginal growth despite high vacancy suggests that landlords are maintaining a firm stance on asking rates, likely supported by the premium nature of existing Grade A inventory,” Savills said.

Across Metro Manila, landlords are prioritizing stabilizing occupancy through increased incentives and flexible terms rather than driving aggressive rental growth, it said.

Savills said the outlook for Alabang remains cautious, with rental growth expected to stay flat or come under pressure unless leasing demand strengthens enough to absorb existing oversupply.

The district is one of six core business areas in Metro Manila, alongside Makati, Bonifacio Global City, Ortigas, Bay Area and Quezon City.

While Alabang has relatively lower stock and limited upcoming supply compared with other hubs, it has also shown higher volatility in absorption trends.

Savills noted that Metro Manila’s broader office pipeline remains substantial, with about 390,000 square meters of space expected to be completed through end-2026, which could continue to weigh on occupancy rates across key districts.

In contrast, there was stronger activity in Alabang in the fourth quarter of 2025 which, together with the Bay Area, accounted for more than half of total office take-up in Metro Manila during that period, highlighting the volatility in demand patterns across business districts. — Juliana Chloe A. Gonzales