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2Q 2010
2010 started strong with a better than expected real GDP Location Rent % Change from 6 mth
growth of 7.3% in the first quarter due to recent global (Net Effective on NLA) (Local currency)
trade rebounds and election-related spending. According PHP € US$ 3 1
to policy makers, growth for 2010 is projected to be at 5% /sq.m. /sq.m. /sq.ft. mth yr
/mth /mth /mth ago ago
to 6%, whereas inflation rate is expected to range from 4%
to 4.8%. Exit-strategies are also now being seen to take Makati CBD 850 14.21 1.71 0.13% 6.3% 
Otigas Center 550 9.20 1.10 0.13% -10% 
root; the central bank has indicated that it is considering
Fort Bonifacio 600 10.03 1.20 0% 0% 
normalizing its policy rates, and that despite the low Filinvest 450 7.53 0.90 0% 0% 
inflation rate registered in June at 3.9%, inflationary Legend
pressures are still present. Construction projects have Market Rising  Market Stable  Market Falling  US$=Php46.30
increased considerably in the first half of 2010, reinforcing EUR=Php59.83
the projected growth. The new administration in place also SIGNIFICANT NEW LEASE TRANSACTIONS
admitted that putting in check the fiscal health of the Building Tenant Sq. M. Location
country will be a challenge. In fact, the budget deficit
target was also adjusted from Php300B to Php325B, Rockwell Meralco TrendMicro 10,000 Ortigas Ctr
although S&P declared that this will not affect the credit 8 Park B Accenture 6,000 Frt Bonifacio
ratings of the country since the new target still remains
consistent with the current rating score. W Office Results Manila 3,500 Frt Bonifacio

Overview World Finance Factset 1,700 Frt Bonifacio

The market has somewhat stabilized at its current lease
rates. In fact, not much movement has been seen over the
Building Location Office GFA Completion
1st half of 2010. This is particularly true for most business (Sq. M.) Date
areas. Prime rates at the CBD stood at Php850/sqm/mth,
with the average vacancy rate of 8.5%. Zuellig Building Makati CBD 66,000 3Q 12

Outlook Sun Life Centre BGC 22,500 2Q 11

2010 is still tenant favorable market and it is expected to
remain so at least until the 1st half of 2011. Hence, lease W Office BGC 9,108 3Q 10
rates in the major business areas are seen to remain stable
although gradual increases may occur at the latter part of GA Corporate Ctr QuezonCty 10,000 3Q 10
the 1st half of 2011. Investor sentiment is generally
perceived to continue to improve and that the expected OVERALL GRADE A RENT AND VACANCY (Makati CBD)
release of the implementing rules and regulations of the
Real Estate Investment Trust Law (REIT) is also seen to
generate huge investments to the sector. Developers are
still aggressive enough that new supply is expected to
arrive from this year to the next.

Latest Release Average
FY 2009 FY 2010*
Real GDP Growth 1Q 10 7.3% 1.13% 7.3%
Unemployment 4Q 09 7.3% 7.48% -
Inflation Rate Jun-10 3.9% 3.35% 4.25%*
Source:.,National Statistics Office, National Statistical Coordination Board
Note: 2010* = 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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