Megaworld Corp. recorded about 150,000 square meters (sq.m.) of office lease renewals in the first nine months of 2026, outpacing nearly 100,000 sq.m. in new leases, as renewals accounted for the majority of its office leasing transactions during the period.

In a regulatory filing on Monday, the Tan-led property developer said total office leasing transactions reached nearly 250,000 sq.m. across its Metro Manila and provincial townships, with existing tenants holding expiring contracts renewing at a rate of 90%. Because renewals keep existing tenants in place while new leases bring in occupiers beyond the current roster, the split separates demand retained within the portfolio from floor area added by new customers.

Metro Manila properties accounted for 76% of total lease renewals, equivalent to about 113,000 sq.m., while provincial developments contributed the remaining 24%, or approximately 37,000 sq.m. New leases showed a similar tilt toward the capital region: Metro Manila offices made up 63%, or about 63,000 sq.m., with provincial properties accounting for the remaining 37%, or nearly 37,000 sq.m. — roughly on par with the volume of provincial renewals during the same period.

Regional leasing transactions covered the company's developments in Pampanga, Southwoods City in Laguna, Iloilo Business Park in Iloilo City, The Upper East in Bacolod City, and The Mactan Newtown in Lapu-Lapu City, Cebu.

Within Metro Manila, new tenants included French banking group BNP Paribas, which took space at Uptown Eastgate in Uptown Bonifacio, and global information technology services company Cognizant, which leased at 18/20 Upper McKinley in McKinley Hill, both in Taguig City. Megaworld said Uptown Eastgate ranked among its top-performing office buildings in terms of leasing activity during the third quarter.

"The strong pace of new leases and renewals shows continued demand for strategically located, high-quality office spaces, particularly in the provinces where more businesses are expanding," Megaworld Premier Offices Head Roland J. Tiongson said in a statement.

"We will continue to grow our office portfolio in key regional centers while strengthening our established townships in Metro Manila to capture these opportunities," he added.

Megaworld Global Offices Head Francis Roxas, meanwhile, said the company sees opportunities to attract international tenants as businesses reassess their office requirements.

"As global companies continue to reassess their workplace strategies and expand their presence across key markets, we see opportunities to position the Philippines as a strategic destination for their operations," he said.

The comments frame a period in which retaining incumbent tenants accounted for roughly 60% of the company's total leasing volume, with new leases making up the remaining share — a balance that highlights the role tenant retention plays in overall office leasing activity at a time when companies worldwide are reassessing their space requirements.

Megaworld currently manages more than 1.7 million sq.m. of gross leasable office space across nearly 90 towers nationwide, accommodating more than 200 multinational tenants, according to the company. Its office portfolio spans Eastwood City in Quezon City; Uptown Bonifacio, McKinley West, and McKinley Hill in Taguig City; and provincial townships in Iloilo, Bacolod, Cebu, and Davao.

The company said it aims to expand its office portfolio to 2 million sq.m. of gross leasable area by 2030 — a goal that implies adding roughly 300,000 sq.m. on top of its current stock, with the pace of new take-ups and renewals in future disclosures offering a measure of progress toward that target.

Shares in Megaworld fell one centavo, or 0.43%, to close at P2.29 apiece at the local bourse on Monday.

— Juliana Chloe A. Gonzales, BusinessWorld

Source: BusinessWorld