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1Q 2010
The expectation that 2010 will be a better year for the Location Rent % Change from 6 mth
(Net Effective on NLA) (Local currency)
Philippines is still the general sentiment. Election Outlook
spending and OFW Remittances have buoyed domestic PHP € US$ 3 1
/sq.m. /sq.m. /sq.ft. mth yr
consumption, thereby the economy as well. OFW /mth /mth /mth ago ago
Remittances is seen to increase by 8%, according to Makati CBD 850 13.98 18.87 -10% -5.6% 
Moody’s forecast. Despite recent claims by the IMF that Otigas Center 550 9.17 12.27 37% -8.3% 
the world economy is still not out of the woods, Fort Bonifacio 600 9.85 13.32 0% -20% 
emerging economies like the Philippines has registered Filinvest 450 7.39 9.97 0% -10% 
economic growth. Policy makers have already Legend
identified gradual exit-strategy options to be Market Rising  Market Stable  Market Falling 
implemented once economic growth is sustainable.
Inflation rate is still stable at 4.25% as of March, but it is SIGNIFICANT NEW LEASE TRANSACTIONS
Building Tenant Sq. M. Location
the highest in the 3-month period, the increase is
attributed to rising fuel and utility cost. The upcoming UP Ayala IBM Phil. 10,000 Quezon City
elections might cast a shadow of uncertainty in the
1880 Eastwood Siemens 3,800 Quezon City
political climate but peaceful transition of power is
expected. The next administration is expected to hurdle 1880 Eastwood WNS 3,800 Quezon City
fiscal woes.
Overview 8/20 UMK TR 10,000 BGC
The lease rates for most business areas have remained
stable as expected, further supporting the general
Building Location Office GFA Completion
consensus that the office market has already bottomed (Sq. M.) Date
out. Makati CBD’s prime rates stood at Php850/sqm/mo,
whereas vacancy rate is at 8%. Supply is still expected to BGC BPO BGC 31,087 1Q 10
increase as significant office building projects are
underway and are expected to be finished within the year. World Finance Plaza BGC 24,254 2Q 10
Lease rates for most business areas are expected to remain One Global Place Eastwood 34,334 2Q 10
stable at least until the 2nd Quarter of 2010. Gradual
increases are seen to happen shortly after. The success
and results of the first automated election though may
have a lasting impact on investor sentiment which might OVERALL GRADE A RENT AND VACANCY (Makati CBD)
lead to the prolonged period or trend of low lease rates. It
is still expected to be a tenant’s market since new supply is
still seen. The foreseen growth in OFW remittances is
expected to buoy the sector, along with the REIT Law as
soon as the implementing rules and regulations of the law
have been released. 2010 is still perceived to be a better
year than 2009, a return to pre-crisis levels in 2010 is still seen

Latest Release Average
FY 2009 FY 2010*
Real GDP Growth 4Q 09 1.80% 1.13% -
Unemployment 4Q 09 7.3% 7.48% -
Inflation Rate Mar-10 4.4% 3.35% 4.3%*
Source:.,National Statistics Office, National Statistical Coordination Board
Note: 2009* = partial figures (average)
For further information, please This report contains information available to the public and has been relied upon by Cushman & Wakefield
contact on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should
prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or
Josemari C. Cuervo – Cuervo Far East Inc completeness of the information contained herein, and same is submitted subject to errors, omissions,
5th floor S&L Building, 101 Esteban St cor. Dela Rosa change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions
St., imposed by our principals.
Makati City, Philippines 1229
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