The Philippine business process outsourcing (BPO) industry is becoming the catalyst in the local office landscape, and is now at a “turning point” as firms are expanding outside of Metro Manila, according to a commentary posted in the website of Colliers PH.
“As Metro Manila recalibrates, firms are expanding into provincial hubs like Bohol and Cavite, drawn by cost savings and talent access. With resilience and strategic site selection now critical, the industry stands at a turning point,” said the commentary titled “From floorplates to footprints: Where BPOs should expand next.”
“As the Philippine real estate market continues to evolve, the BPO sector (Third-party Outsourcing and Shared Services) remains a key driver of growth – reshaping both Metro Manila and emerging provincial hubs,” it added.
The commentary said Colliers in the first of 2025 recorded total office transaction volume at 605,000 square meters (sqm), with BPO and shared services accounting for 293,000 sqm. This almost matches the 311,000 sqm taken up by traditional office occupiers.
“This near parity underscores the BPO sector’s resilience and its pivotal role in shaping office real estate market demand,” Colliers said.
METRO MANILA UNDERGOES ‘RECALIBRATION’
Metro Manila’s office market, however, is undergoing a recalibration, according to Colliers.
This, as vacancy rates in Metro Manila reached 20 percent in the January-June period this year, with a net take-up of 96,000 sqm. By the end of the year, this is projected to reach 21.4 percent, alongside an anticipated 150,000 sqm in net absorption.
Colliers attributed this to BPO firms setting up operations outside of Metro Manila.
“These numbers reflect shifting occupier strategies, with many firms now exploring cost-effective, talent-rich provincial locations,” Colliers said.
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