Taguig And Makati Office Leasing Narrows Metro Manila Vacancy In Q2

Metro Manila's commercial property market showed a selective improvement in the second quarter as Taguig and Makati leasing helped reduce Grade A office vacancy.

Vacancy Improved Despite Softer Demand

JLL reported Metro Manila Grade A office vacancy at 13.8 percent in Q2 2026, down by about 80.9 basis points from the prior quarter. No new supply entered during the quarter, while corporate activity in Taguig and Makati supported absorption.

Taguig Led The Leasing Signal

Notable Taguig deals included logistics and construction tenants, while Makati saw activity from media, consumer goods and manufacturing occupiers. That shows demand is concentrated in business districts with modern stock and tenant services.

Residential Investors Should Track Offices

Office absorption affects rental demand for nearby condominiums, especially in BGC, Makati and commuter-linked districts. However, condo buyers still need to account for older oversupply and softer rental demand in weaker submarkets.

Buyer Checks

Investors should compare office vacancy, condo vacancy, turnover rates, association dues, tenant profile, flood risk and building age. A district with office demand can still contain individual buildings with weak leasing.

Outlook

Metro Manila's recovery is likely to stay uneven. Taguig and Makati should keep leading tenant demand, while residential investors need proof that office leasing is translating into actual condo occupancy. Buildings near active corporate relocations should outperform older towers with weak amenity packages.

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