PEZA office supply is tightening in key business districts

Colliers calls for a review of the Metro Manila ecozone approval policy as demand outpaces compliant space.

Nearly seven years after Administrative Order No. 18 paused approvals for new PEZA ecozone buildings in Metro Manila, global real estate services firm Colliers said the policy may now be due for review as effects show in prime office districts.

The supply of PEZA-accredited offices in Makati CBD, Bonifacio Global City, and Ortigas Center is tightening, limiting choices for investors and occupiers in Metro Manila.

While IT-BPM and shared services account for around 70% of office transactions in the first quarter, Colliers noted a growing mismatch between where firms want to locate and where compliant space is available.

The anatomy of the mismatch

Only a fraction of PEZA inventory sits in core CBDs, and larger requirements above 5,000 sq m are harder to accommodate.

Outlook remains constrained, with 41% of upcoming Metro Manila supply PEZA-proclaimed and no new compliant stock expected in the Makati CBD and Ortigas Center.

While Administrative Order No. 11 offers limited flexibility for certain pre-qualified applications, the broader restrictions under Administrative Order No. 18 remain in place, and Colliers said a more calibrated approach under CREATE MORE could better align incentives with current occupier needs.

Firms should consider secondary CBDs and pre-leasing strategies while landlords refurbish older PEZA-accredited buildings to capture sustained demand.

 

 

A legislative freeze meets a massive outsourcing boom. Colliers warns of a tightening PEZA office supply squeeze across prime CBDs.