UMVA has learned that the Alabang central business district in Muntinlupa City has experienced a dramatic reversal in office leasing activity, with net take-up plummeting to 5,800 square meters in the first quarter, a stark contrast to its performance as the district with the highest net take-up in the previous quarter.
The sudden drop from 32,200 square meters in the last quarter of 2025 marks a significant shift in momentum for the district, which had previously led expansion activity among Metro Manila office hubs. This decline in activity has left landlords facing a temporary saturation of Grade A office space, favoring tenants in the process.
Despite the slowdown in demand, vacancy rates in Alabang have improved slightly to 31.3% from 31.8% quarter on quarter, thanks to modest net absorption that helped offset space returns and downsizing activity. However, the district's total office stock stands at about 670,000 square meters, with approximately 16,000 square meters of new supply expected between 2026 and 2030, which could continue to impact occupancy rates.
Average asking rents in Alabang have edged higher to P575.50 per square meter from P572 in the previous quarter, suggesting that landlords are maintaining a firm stance on asking rates, likely supported by the premium nature of existing Grade A inventory. This marginal growth, despite high vacancy, indicates that landlords are prioritizing stabilizing occupancy through increased incentives and flexible terms rather than driving aggressive rental growth.
According to information obtained by UMVA, the outlook for Alabang remains cautious, with rental growth expected to stay flat or come under pressure unless leasing demand strengthens enough to absorb existing oversupply. The district's relatively lower stock and limited upcoming supply compared to other hubs have not shielded it from volatility in absorption trends, highlighting the need for landlords to adapt to changing market conditions.
The broader office pipeline in Metro Manila remains substantial, with approximately 390,000 square meters of space expected to be completed by the end of 2026, which could continue to weigh on occupancy rates across key districts. In contrast, the fourth quarter of 2025 saw stronger activity in Alabang, which, together with the Bay Area, accounted for more than half of total office take-up in Metro Manila during that period, underscoring the volatility in demand patterns across business districts.
