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PHILIPPINES/ Manila - Real Estate

Market Overview – Office Buildings in Metro Manila

Market Snapshot Market Overview Grade-A Building Statistics
Sub- Supply Vacancy Ave. Ave. Rent
• The 1st quarter of 2011 saw the office market market Rent
gradually recovering after bottoming out last year. (sf) US$ psf/
There were a few landlords who increased, although US$ annum
conservatively, their lease rates, but little changes in Peak
vacancy rates were noted.
2009 1Q
• Recovery is expected to continue, albeit slowly. Makati 29,000,000 8.75% $1.79 $21.48
While global economic conditions are less than CBD
Market Market 2009 2Q
desirable, investor sentiment in the country and local
Slowing Recession Ortigas 12,000,000 3.2% $1.16 $13.92
economic fundamentals improve, leading to gradual
increases in lease rates for most of the business Strengthening Weakening Center
districts in Metro Manila are expected. These Market Market
increases are likely to be within the 5% to 10% Fort 17,000,000 6% $1.27 $15.24
Market Market
range. Recovery Bottoming Bonifacio
2009 3Q
• Restrictions in supply are also likely to be felt by 2011 1Q $0.95 $11.4
2009 4Q Filinvest 7,000,000 22%
mid- to late 2011 as demands increase while little 2010 4Q Corp City
2010 1Q
new supply will be available within the year. The
market has begun its gradual shift from being tenant- 2010 3Q 2010 2Q
Quezon 10,000,000 6% $1.16 $13.92
favorable to neutral. Rental
Trough City
•Based on 1Q 2011 available market info

Makati CBD Lease Rates vs. Vacancy Average Office Rents by Cities Asking Rents
Proposed Site 2010
US$ psf/ mth

Enterprise Center 1.90

Bonifacio E-Services 1.37

One Corporate Center 1.06

- Ortigas

UP Ayala Technohub 1.12

I-hub 1 0.95

•US$ = Php44

Net Effective Rents (US$/psf/mth) •1Q2011 figures are indicative only based on available info

1 | Philippines / Manila Real Estate April 2011