Housing & Infrastructure

Bay Area office vacancy reaches 39.3% amid POGO exit and market slowdown

Office vacancy in Metro Manila's Bay Area district surged to 39.3% in Q1 2026, with net absorption falling to -58,400 square meters, reflecting the continued economic impact of Philippine Offshore Gaming Operators' (POGOs) exit from the market. The district faces a significant supply-demand imbalance with 419,600 square meters of vacant space, creating a tenant's market that may force landlords to offer aggressive concessions despite slight increases in asking rent.