ILOILO CITY— The office market in Western Visayas is maintaining its resilience as stable vacancy rates and robust take-up counter the recent surge in new supply, according to real estate services firm Colliers Philippines.

Joey Roi Bondoc, Colliers Philippines research director, said the vacancy rate in Iloilo City remains below the 20 percent threshold despite the introduction of several projects that were initiated before the pandemic and completed over the last year.

“Just before the pandemic, the vacancy in Iloilo City was sub-10 percent. Somehow, it’s inching up because you now have all these new buildings launched just before the pandemic and then completed four or five years after that. So, now have more supply in Iloilo,” Bondoc said.

He noted the first quarter of the year saw strong absorption of space, characterized as a supply-driven expansion.

The focus for developers in the region is now shifting toward capturing higher-value segments of the outsourcing industry. Bondoc emphasized the need to attract global capability centers, which move beyond traditional voice-based services into specialized fields such as software engineering, legal transcription, and medical coding.

The health services sector, in particular, saw accelerated growth during the pandemic and continues to be a primary driver for office space demand in regional hubs.

Megaworld Corp., the Philippines' largest office lessor, is currently the dominant force in the Western Visayas market.

Data from Colliers showed the property giant holds a 48 percent market share in Iloilo’s office sector. The company’s 72-hectare Iloilo Business Park township currently houses 13 office developments with a combined gross leasable area of more than 205,000 square meters. Among these assets are Enterprise One and Enterprise Two, which represent the first LEED Gold-certified office buildings in the province.

The concentration of office space in the township has created a significant economic multiplier for the city. Megaworld estimated that its office developments in Iloilo Business Park generate approximately 20,000 direct jobs. This employment base supports an additional 80,000 indirect jobs across the retail, transportation, and service industries.

To capitalize on an 85 percent occupancy rate—which outperforms the national industry average of 80 percent—Megaworld is diversifying its portfolio with the 19-story International Corporate Plaza (ICP). Unlike the company’s traditional lease-only model, ICP introduces an “office-for-sale” concept with a total sales value of ₱2.5 billion. The project targets local professionals, law firms, and medical clinics looking for permanent footprints in the region.

Francis D. Roxas, Megaworld Global Offices head, said the company is recognizing a shift in demand from smaller businesses and investors who prefer ownership over leasing. Since its completion last year, ICP has sold approximately 65 percent of its 300 units.

Property values for the development have appreciated 43 percent since launch, reaching approximately ₱231,000 per square meter.

The development is situated within the township’s commercial district, providing proximity to high-end hotels and the Festive Walk Mall. Managed facilities within the tower include executive boardrooms, co-working spaces, and a sky garden, signaling a move toward premium, integrated office environments in the provinces.