ILOILO CITY — Iloilo has vaulted to the top of provincial office leasing rankings in the first half of 2026, overtaking long‑time leader Metro Cebu in total demand. The latest Colliers Philippines report confirms the city’s emergence as a premier destination for business expansions outside Metro Manila.
A Supply‑Driven Surge
Iloilo closed 16,000 square meters of office transactions in the first quarter of 2026, accounting for nearly half of the 37,000 square meters of deals recorded outside the capital. Cebu trailed at 9,000 square meters, while Pampanga and Laguna settled for 8,000 and 1,000 square meters respectively. The city’s ready‑to‑occupy Grade A spaces fueled the historic leap.
Colliers Research Director Joey Roi Bondoc said demand follows where premium infrastructure exists. He pointed out that Iloilo had large, contiguous floor plates of at least 1,000 square meters available—exactly what information technology and business process management (IT‑BPM) occupiers require. The current vacancy rate of 32 percent is being framed as a window of opportunity rather than a weakness.
Megaworld Dominates with Grade A Spaces
Megaworld Corporation holds a commanding 48 percent share of Iloilo’s office market, operating 13 completed towers with an 85 percent occupancy rate. Its 72‑hectare Iloilo Business Park has become a magnet for multinational firms, anchored by the province’s first LEED Gold‑certified buildings, Enterprise One and Two.
The township integrates office, residential, retail, and leisure components, creating a live‑work‑play environment that appeals to global locators. Beyond Megaworld, developments such as Atria Park District, SM Strata Towers, and Robinsons Cybergate Iloilo provide additional PEZA‑accredited spaces. These modern estates are equipped with reliable digital infrastructure and sustainable building designs.
Skilled Workforce and Lower Costs
Colliers attributes much of Iloilo’s momentum to a deep pool of skilled graduates in IT, engineering, finance, and healthcare, produced by the city’s numerous universities. Competitive operating costs—significantly lower than in Metro Manila or Cebu—further strengthen the value proposition for locators. Companies benefit from reduced labor expenses and attractive rental rates while maintaining high employee satisfaction.
The city’s quality of life, boosted by master‑planned roads, riverside esplanades, and a low crime rate, helps firms retain talent. Employee retention is a critical metric for the IT‑BPM sector, and Iloilo consistently delivers. The combination of human capital and infrastructure has transformed the city into a strategic expansion hub.
Outlook: Vacancy as Opportunity
With no major new office supply expected after 2026, the current inventory of 372,000 square meters is projected to be gradually absorbed. Colliers sees the vacancy as a rare chance for occupiers to secure premium spaces before the market tightens. Rental rates remain competitive, ranging from ₱300 to ₱750 per square meter.
An “office‑for‑sale” strategy via the 19‑story International Corporate Plaza has already seen 65 percent of its units sold. Capital values surged 43 percent to ₱231,000 per square meter, reflecting strong investor confidence. The trend mirrors a broader national shift where businesses are actively seeking regional locations with modern infrastructure and talent.
A Model for Regional Growth
Iloilo’s office market ascent reinforces its position as the fourth‑largest provincial office hub by total stock, behind Cebu, Pampanga, and Davao. Yet leading in leasing transactions demonstrates that demand, not just size, defines success. The province’s strategic urban planning, public‑private collaboration, and business‑friendly policies have turned it into a competitive alternative for companies expanding beyond Metro Manila.
