Several government agencies have moved to modern, more efficient office spaces in 2024, which drove office demand during the period, property consultants said in separate reports.
According to JLL, corporate occupiers pulled up demand for office space despite persisting market pressures in 2024.
Based on JLL data, traditional occupiers dominated office leasing space, accounting for 44.6 percent of transactions in 2024.
“Behind the large takeup is (the relocation of) government agencies like the National Bureau of Investigation (NBI), Department of Trade and Industry, and Department of Foreign Affairs in the second and third quarter of 2024,” said Janlo delos Reyes, JLL head of research.
These government agencies, delos Reyes said, comprised 63 percent of the takeup and collectively occupied 76,000 square meters (sq.m.) of space.
In another report, Colliers said government agencies in Metro Manila are relocating to modern buildings to improve service efficiency and streamline processes.
The property consultancy said while managing costs and ensuring smooth transitions can be challenging, the advantages—like enhanced service delivery, upgraded infrastructure and greater accessibility—make these relocations a significant step toward modernizing government operations.
With thoughtful planning, transparency, and a focus on long-term investment, Colliers said, these moves will continue to enhance public services while responsibly managing taxpayer funds.
“These moves aim to ensure better use of taxpayer money while staying within an approved “all-in” budget that covers rent, utilities, and fit-out costs,” said Guinievere Rafanan, assistant manager for Office Services at Colliers
Why they move out
In the report, Colliers cited two reasons why government agencies are relocating.
One is aging infrastructure.
Colliers said visiting government offices in Metro Manila can be a hassle at times — from finding a parking to squeezing into cramped, slow elevators. Waiting in poorly ventilated areas and dealing with outdated processes only add to the frustration, the report said.
Colliers said the experience in newer buildings is the opposite as these modern facilities feature spacious, air-conditioned waiting areas, streamlined systems and helpful staff.
Automated machines for document processing are a major improvement as well. Instead of manually filling out forms and waiting in long lines, visitors can quickly enter their information and submit it electronically, significantly speeding up the process.
According to Colliers, one of the most appreciated changes is the ability to book appointments online. This eliminates the need to arrive early and endure long lines that often start outside the building. By scheduling visits in advance, people can avoid congestion and save valuable time.
“When government infrastructure is modernized, public service becomes more efficient and less stressful for everyone involved,” Rafanan said.
Another reason for relocation of government agencies is the rising service demand.
“As the population in Metro Manila grows, so does the need for faster and more accessible government services. Relocating to newer, more efficient buildings allows agencies to handle the increasing demand, improving service delivery and making government services more accessible to citizens,” Rafanan said.
But Colliers said managing relocation costs is crucial to prevent overspending while ensuring high-quality facilities are delivered.
To stay within budget, agencies often negotiate better rental rates, use energy-efficient systems and choose buildings with modern infrastructure.
Pros and cons
Newer buildings have benefits as well as challenges, according to Rafanan.
The report said one of the biggest perks of moving to a modern building is faster, better service. Newer spaces are designed to make things run more smoothly, reducing waiting times and making services more accessible, so citizens can get what they need without the hassle.
Another benefit is operational efficiency. Colliers said new office spaces often have open layouts, the latest technology, and energy-saving systems that help cut costs and improve productivity. These upgrades help government workers do their jobs more efficiently and keep things running sustainably.
Public convenience is another benefit, the report said.
Moving government offices to more convenient locations, like central areas in Metro Manila, makes it easier for people to visit. It reduces the time and effort needed to access important services, making the entire process simpler and more convenient for everyone.
Modern buildings also enable tenants to adopt cost control strategies. These include negotiating competitive rental rates, implementing energy-saving technologies, and designing flexible office spaces that can easily adapt to future needs. Energy-efficient systems like smart air-conditioning and LED lighting also help lower utility bills, contributing to long-term savings.
But finding the right balance between getting a high-quality facility and staying within the budget is one of the toughest challenges of relocating.
Colliers said agencies have to figure out which features are essential and prioritize spending to make sure they are getting the most value for both employees and the public.
Another challenge is long-term sustainability.
Colliers said agencies need to think ahead about the long-term costs.
“It is not just about the initial move; they have to plan for ongoing maintenance, energy bills, and future renovations to make sure the new facility is sustainable for years to come,” the report said.
From the landlord’s perspective, while leasing to government agencies can mean stable income, the short-term lease agreements often required by government contracts can limit flexibility.
Colliers said landlords need to cover the costs of modifying the building to meet government requirements, which can affect their return on investment. Balancing these expenses while maintaining profitability can be a challenge.
“Relocating to modern, more efficient office spaces allows government agencies to provide faster and more accessible services to the public. While managing costs and ensuring smooth transitions come with challenges, the benefits—such as improved service delivery, better infrastructure, and easier access—make these relocations a step forward in modernizing government operations. With careful planning, transparency, and long-term investment, these relocations will continue to improve public services while being responsible with taxpayer money,” Colliers said.
Notable relocations
Some of the notable relocations reported by Colliers are the Bureau of Immigration which moved to a new office in Pasay from Manila to better serve those dealing with visa applications or passport renewals; NBI which relocated to a modern, spacious facility in Pasay as part of a renovation of their old building in Manila; Office of the Solicitor General to a new office in Makati is part of the renovation of their old facilities; Department of Tourism – Region IV-B (DOT-MIMAROPA) to a newly-built office space in Mandaluyong and the Philippine Amusement and Gaming Corp. which expanded to a modern office building in Pasay.
