Alabang Office Market Shows Early Signs of Stabilization Despite High Vacancy

ALABANG, Muntinlupa — The Alabang office market is showing early signs of stabilization as elevated vacancy levels are being offset by limited new supply, continued IT-BPM demand and the area's established infrastructure and mixed-use business environment.

The market, anchored by major commercial hubs including Filinvest City, Northgate Cyberzone and Madrigal Business Park, continues to face higher vacancy than prime office districts such as Makati and Bonifacio Global City.

However, recent market tracking indicates that vacancy has edged down to approximately 31.3 percent from 31.8 percent in the previous quarter, suggesting that demand may be beginning to stabilize.

Alabang has historically recorded some of the highest office vacancy levels in Metro Manila, with broader historical readings reaching approximately 36.6 percent.

The submarket currently has an estimated 670,000 square meters of existing office stock.

Limited new supply could support recovery

One of the key factors supporting the market's medium-term outlook is the relatively limited amount of new office space expected to enter Alabang.

Approximately 16,000 square meters of additional office supply is projected between 2026 and 2030, according to market estimates.

The restrained pipeline reflects a broader shift among developers following changes in corporate office strategies and the continued impact of hybrid work arrangements.

With fewer large speculative office developments entering the market, landlords may have more time to absorb existing vacant inventory before facing significant additional supply pressure.

Sustainability becomes a competitive advantage

The area's concentration of modern, sustainable and PEZA-accredited buildings is also supporting Alabang's competitiveness.

Filinvest City and Northgate Cyberzone include office properties incorporating green-building standards, energy-efficient systems and other sustainability features.

For corporate occupiers, these features can help reduce long-term operating costs while supporting increasingly important environmental and sustainability objectives.

The broader flight-to-quality trend may therefore benefit newer and better-performing buildings as companies reassess their office requirements.

Infrastructure strengthens Alabang's position

Alabang's connectivity remains another major advantage.

The district is linked to major transportation corridors, including the South Luzon Expressway, Skyway system and Daang Hari, providing access to southern Metro Manila and the wider CALABARZON region.

This positioning allows companies to establish operations outside the traditional central business districts while maintaining access to a large labor pool across the southern part of the metropolis and nearby provinces.

The area's established mixed-use environment also provides employees with access to residential communities, retail establishments, hotels, healthcare facilities and other services.

IT-BPM remains an important demand driver

The IT-BPM sector continues to play an important role in Alabang's office market, particularly within Northgate Cyberzone.

The district's established technology and outsourcing ecosystem provides companies with an existing corporate environment, supporting infrastructure and access to workers.

This demand is particularly relevant as companies continue to balance hybrid work arrangements with requirements for physical office space.

Gradual recovery expected

For landlords and investors, Alabang's recovery is expected to be gradual rather than immediate.

High vacancy remains the market's primary challenge, particularly for older or less differentiated office buildings. Competition for tenants is likely to remain strong, placing pressure on landlords to offer competitive lease terms and improve building quality.

At the same time, properties with modern specifications, sustainability credentials, strong accessibility and well-integrated amenities could be better positioned to capture occupier demand.

With limited new supply expected through 2030, the market has an opportunity to gradually work through its existing vacancy.

Rather than a rapid rebound, Alabang's office sector is likely to follow a stabilization-focused trajectory, with infrastructure, sustainability and a restrained development pipeline providing support for a longer-term recovery.

Sources: BusinessWorld Online/Savills, Leechiu Property Consultants, Filinvest Land/Filinvest Development Corporation, and TFA Real Estate & Industry News Feeds.