Ayala Land Offices Inc., the office development arm of property giant Ayala Land Inc., has secured a five-year lease agreement with state-run Land Bank of the Philippines for a sprawling office facility at the Ayala Malls Manila Bay Corporate Center.

The transaction expands the footprint of Ayala Land Offices in the Bay Area, a primary growth corridor in the capital, while providing the government lender with a strategic base for its expanding operations.

Under the terms of the agreement, Landbank will occupy 3,866.75 square meters on the sixth floor of the corporate tower. The space is designated to house several of Landbank’s head office units, specialized departments, and a subsidiary, the companies said in a joint statement.

The lease is scheduled to commence on June 1, 2026. The contract was formalized between Landbank as the lessee, Bay City Commercial Ventures Corp. as the lessor, and Ayala Land Offices as the leasing manager.

Ayala Land described the move as a reinforcement of its commitment to developing integrated, mixed-use environments that cater to modern workplace demands.

The new office site is designed to offer a more accessible and people-centered environment, addressing the evolving requirements of large-scale organizations.

Ayala Land noted that the lease underscores its strategy to provide high-quality office solutions that support operational efficiency.

The deal comes as Ayala Land’s office segment continues to outperform broader market trends. For the first nine months of 2025, the company reported that its office leasing revenues climbed six percent to ₱9 billion.

The growth was largely driven by an occupancy rate that remains significantly higher than the industry average, despite a challenging global environment for commercial real estate.

The steady performance of the office division has contributed to the overall strength of Ayala Land’s leasing and hospitality business. Total revenues from this diversified portfolio grew six percent to ₱35.1 billion during the three quarters ending in September 2025.

Within this segment, hospitality revenues rose four percent to ₱7.4 billion, bolstered by consistent occupancy levels across its hotel brands and the addition of the New World Makati Hotel to its portfolio. This growth was achieved even as the company temporarily closed certain assets for scheduled renovations. (James A. Loyola)