Metro Clark Office Market Continues Its Recovery

Metro Clark’s office market continues to recover, with vacancy declining, leasing activity remaining positive, and rents moving upward in 3Q 2026. Flexible office space is also expanding as the market adjusts to changing occupier requirements.

Metro Clark’s office market is four years into its recovery from the high vacancy levels recorded in 2022. As of 3Q 2026, the market has 449,697 sq m of office stock, with 63,720 sq m of vacant space. This puts the overall vacancy rate at 15.6%, down from approximately 35% in 2022.

The improvement has taken place during a period of limited new supply. No new office stock has been added since 2024, while net take-up has remained positive every year since 2022.

Vacancy continues to decline

The drop in vacancy has been one of the key developments in Metro Clark’s office market over the past few years.

From a peak of approximately 35% in 2022, the vacancy rate has continued to decline as existing office space is absorbed. By 3Q 2026, vacant space stood at 70,270 sq m out of the market’s 449,697 sq m office stock. 

The market's developer landscape remains concentrated among several major portfolios. SM Prime, Berthaphil, and West Aeropark together account for 60% of Metro Clark’s office stock. At the same time, nearly two-thirds of the market’s current vacancy is concentrated in Filinvest’s portfolio across several buildings.

Limited new supply supports absorption

The supply pipeline has remained relatively limited, which has given existing office stock more time to be absorbed.

There has been no new office supply since 2024, while net take-up has remained positive every year since 2022. Quarterly take-up in 2026 has also been fairly consistent, ranging between 10,400 sq m and 10,900 sq m.

Leasing activity during the year has covered a range of occupier requirements. Transactions in 2026 include 4,200 sq m at eNtec 2 for flexible office, 3,900 sq m at Clark Cityfront Tower 4 for IT-BPM, and transactions at One West Aeropark Campus for both flexible office and IT-BPM requirements.

The continued take-up of existing space, alongside the absence of new supply, has contributed to the reduction in overall vacancy.

Rents move higher

Rental levels have also continued to increase.

Average office rents reached PHP 540.50 per sq m per month in 3Q 2026, up from PHP 505.00 per sq m in 2Q 2024. This represents a 7.0% increase over the period. The report also records no quarterly decline in rents during this period. Year-on-year rental growth turned positive in 1Q 2025 and has remained above 2.0% since 3Q 2025.

Rental levels vary across Metro Clark. Buildings with near-full occupancy, including West Aeropark and SM, have the highest published asking rates in the market at around PHP 700 to PHP 800 per sq m.

Flexible office continues to expand

Flexible office space has become another growing part of Metro Clark’s office market.

Flex office stock has increased steadily since 2018 and now stands at 3,545 seats, with another 1,353 seats upcoming in 2026.

KMC Solutions' expansion at One West Aeropark would bring its total seat count to 1,280 across three floors, contributing to the growing supply of flexible workspace in Clark.

Unlike traditional office space, flexible offices are fully fitted and move-in ready, with space that can be scaled by seat. This provides occupiers with another option as they assess their office requirements and commitment periods.

What to watch in the Metro Clark office market

Metro Clark's office market has continued to improve from the high vacancy levels seen in 2022. The current market is characterised by lower vacancy, positive take-up, limited new supply, and rising rental levels.

At the same time, the expansion of flexible office space is adding another layer to the market, giving occupiers more options beyond conventional office leasing.

How these trends develop will be worth watching as the market moves through the rest of 2026, particularly as available space continues to be absorbed and new requirements come into the market.

Savills Philippines’ Research team continues to closely monitor developments in the Metro Clark office market, including vacancy, leasing activity, rental levels, supply, and occupier demand.

 For further information on the Metro Clark office market, please contact:

Jamie Dela Cruz, Research Manager

[email protected]