Metro Manila’s office market is poised for renewed activity after the government reopened the capital to new information technology parks and IT centers, ending a seven-year moratorium that had constrained the supply of PEZA-accredited office space.

President Ferdinand Marcos Jr. issued Administrative Order No. 45 on 23 July, lifting the restriction imposed under Administrative Order No. 18 in 2019.

The policy shift comes as the country’s information technology-business process management (IT-BPM) sector continues to expand and global capability centers (GCCs) become a larger source of office demand.

Leechiu Property Consultants said the industry generated $40 billion in revenue and employed 1.9 million Filipinos as of end-2025, making it a major source of foreign exchange and formal, middle-income jobs.

Yet while demand remained strong, the supply of incentivized, Philippine Economic Zone Authority (PEZA)-accredited space in major Metro Manila business districts became increasingly limited.

The 2019 moratorium was intended to encourage IT-BPM development outside the capital, helping drive growth in locations such as Clark, Cebu, Iloilo and Davao.

AO 45 retains the broader regional development strategy while allowing new IT parks and centers in Metro Manila, where talent, infrastructure and global connectivity remain concentrated.

Office take-up reached 488,000 square meters in the first half of 2026, 32 percent lower than the same period last year.

But the decline masks a shift in the composition of demand.

GCCs — offshore operations established by multinational companies in industries such as finance, technology, healthcare and professional services — have emerged as a major driver of office requirements.

These companies typically seek larger, higher-specification floors in well-located, PEZA-accredited buildings, increasing pressure on available space in Makati, Bonifacio Global City and Ortigas.

For multinational companies weighing expansion in the Philippines against India, Vietnam and Malaysia, the availability of Grade A, incentivized office space can be an important consideration.

The reopening of Metro Manila is therefore expected to give companies additional options while preserving the government’s push to develop IT-BPM hubs in the regions.

The market has already begun responding to the policy change, with five projects filing PEZA applications.

These are Triumvirate’s One Trium Tower in Muntinlupa; MJ Landtrade’s Altaire in Makati; The Yuchengco Centre of House of Investments and Sojitz Corporation in Makati; Aseana Holdings’ Parqal in Parañaque; and Ayala Land’s ARCA South 1 in Taguig.

The PEZA Board is still finalizing the implementing guidelines for AO 45.

PEZA Director-General Tereso O. Panga described the order as a major policy breakthrough that could strengthen the Philippines’ ability to compete for the next wave of IT-BPM and GCC investments.

The need for new supply is also underscored by the age of existing office stock. About 44 percent of Metro Manila’s available PEZA office space is considered aging.

The capital currently has 178 IT parks and centers and more than 1,000 registered locators.

For developers and landlords, the policy reopening creates opportunities to pursue PEZA accreditation and tap the IT-BPM market.

Companies that previously deferred Metro Manila expansion or settled for non-accredited space now have additional options as new projects enter the pipeline.

Investors could also benefit from opportunities to reposition eligible properties for the IT-BPM market.

The industry continues to face challenges, particularly from artificial intelligence, slower enterprise investment cycles and increasing competition from emerging outsourcing destinations.

Still, the reopening of Metro Manila addresses a constraint within the government’s control: The limited supply of accredited office space in the country’s largest business market.

With the IT-BPM sector supporting millions of jobs and significant foreign exchange earnings, the return of new IT park and center development in the capital could play an important role in sustaining the Philippines’ position as a global services hub.