Office: Overall Prime and Grade ‘A’ office vacancies decreased by 58-bps in Q4 2023, with the vacancy figure closing at 16.26% from the reported vacancy of 16.84% in Q3 2023. An absorption figure of roughly 0.11 million sqm of office space was recorded in the quarter, the highest recorded absorption figure since 4Q 2021, which brings the net absorption for 2023 to over 0.23 million sqm.
Investment: Estimated average office (gross) rental yields in Q4 2023 inched downwards to 6.80% from its Q3 2023 level at 6.90%. Year-on-year (YoY), however, the rental yields increased by about 55 bps from its level in Q4 2022. Despite a respite from the hike in key global interest rates, C&W Research, however, estimates gross rental yields for the Manila market will slightly increase in 2024 in view of the anticipated second round effects of the consecutive policy rate adjustments made by the Bangko Sentral ng Pilipinas.
Learn more by clicking our most recent Philippine MarketBeat reports below.
