Office: Due to elevated vacancy rates, a number of office space developments, especially in fringe locations, are being offered at lower asking rates, eventually dragging the average asking rates of Prime and Grade 'A' developments in Metro Manila at PHP 1,012 per sq.m per month, a 1.06% decline from an average of PHP 1,023 per sq.m per month in the previous quarter.
Investment: Estimated average office (gross) rental yields in Q1 2024 increased to 6.85% from its Q4 2023 level at 6.80%. Year-on-year (YoY), however, the rental yields declined by about 5 bps from its level in Q1 2023. As global interest rates have not declined as anticipated, C&W Research estimates gross rental yields for the Manila market to continue its upward movement in the near-term.
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