Iloilo’s office market: A rising hub for business growth and work-near-home opportunities
Iloilo is emerging as a prime destination for business and investment, with a thriving office market that holds immense potential for growth.
As companies seek to optimize operations and embrace hybrid work models, Iloilo stands out as an ideal location for expansion with its skilled workforce, strong business environment, and excellent quality of life.
Strong demand meets a growing market
Despite fluctuations in vacancy rates, the demand for office space in Iloilo has remained steady.
The challenge has not been the lack of interest but rather the limited supply of large, contiguous office spaces that meet the operational needs of growing businesses. Companies, particularly those in the IT and business process management (IT-BPM) sector, require offices that allow for seamless expansion, operational efficiency, and workforce collaboration.
However, much of Iloilo’s existing office inventory consists of smaller, fragmented spaces that do not fully accommodate these needs.
As a result, businesses looking to establish or expand their presence in the city face difficulties in securing adequate workspace, slowing the pace of office market growth.
Eager to expand
Although office transactions peaked at 50,000 sqm in 2020, the market could have seen even more activity had there been sufficient office supply.
Many IT-BPM companies eager to expand here had to postpone their plans until 2021, when newly completed office buildings became available.
As a result, transactions remained strong at 47,000 sqm in 2021, vacancies fluctuated due to an influx of new supply. By 2022, available office space increased, though take-up remained steady at 38 percent of total vacancies. While 2023 saw fewer transactions compared to previous years, market activity picked up in 2024, reaffirming the sustained interest of IT-BPM companies in Iloilo’s office sector.
With a surplus of available office space from the previous years, Iloilo presents a continued opportunity for businesses and investors looking to establish or expand their regional presence.
Iloilo’s competitive advantage
The expansion of several outsourcing companies in Iloilo is a testament to the city’s strong business environment and talented workforce.
Companies that initially established operations here have chosen to grow further, reflecting their confidence in the local labor market. Iloilo boasts a highly skilled talent pool, making it a top choice for industries that require customer service excellence, such as healthcare and outsourcing.
Known for their warmth and hospitality, Iloilo’s workforce excels in roles that require customer interaction, positioning the city as a top choice for IT-BPM companies seeking exceptional service talent.
With a strong educational foundation and a culture of professionalism, Iloilo’s workforce continues to be a key driver of the city’s economic growth. As more businesses recognize these advantages, the demand for office space is set to rise, reinforcing Iloilo’s status as a prime business hub.
‘Work-near-home’
The shift from work-from-home to work-near-home is reshaping the landscape, and Iloilo is perfectly positioned to support this transition.
Companies are increasingly looking for regional office locations that offer employees the convenience of working close to home while still benefiting from a professional environment.
Iloilo provides an ideal setting for this model. With its business-friendly atmosphere, affordable real estate, and vibrant community, the city attracts companies wanting to offer employees a high quality work-life balance. Expanding Iloilo’s office market will not only accommodate this shift but also create new opportunities for both businesses and local professionals.
A future full of possibilities
Iloilo’s office market is at a turning point, poised for remarkable growth. By addressing the supply gap and capitalizing on its workforce strengths, the city can unlock new opportunities for businesses and professionals alike.
With ongoing investments in infrastructure and commercial developments, Iloilo is well on its way to becoming a premier business hub in the Visayas. As companies continue to seek dynamic, people-centric locations for expansion, Iloilo stands ready to welcome them with open arms.
The future is bright for Iloilo’s office market–one defined by growth, opportunity, and a thriving business ecosystem. Now is the time to invest in its potential.
The author is executive director for Commercial Leasing at Leechiu Property Consultants Inc., the country’s premier real estate advisory firm
