Office: By the end of Q3 2024, the overall vacancy rates for Prime and Grade ‘A’ Office developments in Metro Manila rose by 280 basis points (bps) quarter-on-quarter and by 136 bps compared to the previous year. The average vacancy rate reached 18.2%, the highest level estimated by Cushman & Wakefield Research since Q2 2004, marking an increase of over 1,380 bps since Q2 2020.
Investment: Estimated average office (gross) rental yields in Q3 2024 increased to 6.92% from its Q2 2024 level at 6.90%. Year-on-year (yoy), rental yields increased by 2 bps from their level in Q3 2023. As the Monetary Board is expected to implement further reduction in the Bangko Sentral ng Pilipinas’ (BSP) policy rates before the end of 2024, C&W Research estimates gross rental yields for the Manila market to continue its upward movement in the near term.
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