Secondary Business Districts Set to Drive Commercial Real Estate Growth in 2026

As the Philippine commercial real estate market heads into 2026, growth is no longer defined solely by traditional central business districts. A growing share of leasing activity, development interest, and investor attention is shifting toward secondary business districts across Metro Manila and nearby growth corridors. This decentralization marks one of the most significant structural changes shaping the market in the coming year.

Rather than signaling weakness in established CBDs, the rise of secondary districts reflects changing business priorities, improved infrastructure connectivity, and evolving workplace strategies. For companies, landlords, and investors, these areas are becoming central to long-term planning.

What Defines a Secondary Business District Today

Secondary business districts are areas outside the traditional CBDs that now support sustained commercial activity. These districts typically feature a mix of office buildings, retail components, residential developments, and access to major transport routes. While historically viewed as peripheral locations, many now function as independent commercial hubs.

In Metro Manila, districts such as Mandaluyong, San Juan, Parañaque, Las Piñas, Alabang, and parts of Quezon City are increasingly treated as viable alternatives to Makati and Bonifacio Global City. These locations benefit from established residential populations, improving infrastructure, and proximity to multiple employment centers.

What sets these districts apart is their ability to serve both business and workforce needs without the congestion and cost pressures associated with traditional CBDs.

Cost Efficiency Drives Location Strategy

One of the strongest drivers behind the shift toward secondary districts is cost efficiency. Office rental rates and overall occupancy costs remain significantly lower in many non-CBD locations. For companies managing headcount growth or restructuring post-pandemic space requirements, these cost differences are meaningful.

Lower rents allow businesses to lease higher quality space, invest in better layouts, or maintain satellite offices closer to where employees live. This has become especially relevant as companies adopt hybrid or flexible work models that prioritize accessibility over prestige addresses.

For landlords, competitive pricing has translated into stronger leasing activity and more stable demand, particularly from small to mid-sized enterprises and support operations of larger firms.

Accessibility and Infrastructure Strengthen Demand

Infrastructure investment continues to play a critical role in the rise of secondary business districts. Expressways, road expansions, and improved transport links have reduced travel times between residential areas and emerging commercial hubs.

Projects connecting northern and southern Metro Manila corridors have made districts once considered distant more practical for daily operations. Improved access has encouraged companies to rethink office placement and enabled developers to position new commercial projects with greater confidence.

As infrastructure projects move closer to completion, these districts benefit not only from improved accessibility but also from rising land values and increased investor interest.

Office Demand Becomes More Distributed

Office demand entering 2026 is no longer concentrated in a small number of districts. Leasing activity is increasingly spread across multiple nodes, reflecting a more distributed workplace strategy.

Many companies are maintaining a central headquarters while establishing smaller offices in secondary districts to support specific teams or regional operations. Others are relocating entirely to non-CBD locations to reduce costs while maintaining access to clients and talent.

This distributed demand has helped stabilize vacancy levels in secondary districts and encouraged landlords to upgrade building systems, improve amenities, and offer more flexible lease terms.

Mixed Use Developments Support Commercial Activity

Secondary business districts benefit from the growing presence of mixed use developments. These projects integrate office, retail, residential, and lifestyle components within a single area, creating self-sustaining environments that appeal to both businesses and employees.

The availability of nearby housing, dining, and essential services reduces commuting pressure and supports consistent foot traffic throughout the day. For tenants, this improves employee satisfaction and operational efficiency. For landlords and developers, it creates more resilient demand across multiple property types.

As mixed use projects continue to expand outside traditional CBDs, secondary districts gain stronger identity and long-term viability as business locations.

Investor Interest Expands Beyond Core CBD Assets

Investors are increasingly looking beyond core CBD assets as they evaluate opportunities for 2026. Secondary districts offer more attractive entry pricing, higher yield potential, and exposure to areas supported by infrastructure growth.

Commercial properties in these locations appeal to investors seeking stable cash flow rather than short-term capital appreciation. Assets with diversified tenant bases, strong local demand, and proximity to residential zones are viewed as well positioned for long-term performance.

This shift in investor focus contributes to increased transaction activity and reinforces the role of secondary districts in the broader commercial real estate landscape.

What This Means for 2026

The growing importance of secondary business districts signals a more balanced and resilient commercial real estate market. Instead of relying on a small number of premium locations, demand is spreading across a wider range of districts with different strengths and use cases.

For tenants, this creates more options and greater flexibility in choosing locations that align with operational needs and workforce preferences. For landlords, it increases competition and encourages improvements in building quality and management. For investors, it expands the range of viable assets to consider.

Heading into 2026, secondary business districts are no longer secondary in impact. They are central to how commercial real estate growth is unfolding.

Our Perspective

As commercial activity becomes more distributed across Metro Manila and surrounding areas, understanding location context is increasingly important. Grid.com.ph helps users evaluate properties across both established CBDs and emerging business districts by providing structured listings and location-based insights. As secondary hubs continue to shape commercial real estate growth in 2026, access to clear and comparable property information supports more confident decision making.