KMC Savills is pleased to present the
latest Office Briefing for 1Q
2017. The report provides current data on rental
rates, vacancies, and supply pipeline in Metro Manila's central
business districts and submarkets for the quarter.
- During 1Q/2017, Metro Manila added 162,200 sq m of office
space. BGC accounted for two thirds of the new supply with
the completion of W City Center and Citibank Plaza.
- Performance across submarkets was mixed. BGC, Alabang and Bay
Area experienced a decline in vacancies despite an influx of new
supply. There was impressive net take-up in these submarkets, but
the overall vacancy rate in Metro Manila increased to 2.4%, due to
decreased occupancy in Makati CBD and Quezon City.
- Although the vacancy rate was held in single digits, rental
growth continued to normalize at 3.7% YoY. The Makati CBD
maintained its premium in the capital after rentals grew by 3.8%
YoY - outperforming other submarkets.
- We are still expecting about 781,800 sq m of additional office
supply within the year. Downward pressure on rents should persist
in the coming quarters, however market appetite remains largely
intact as evidenced by the brisk absorption of new completions
during the quarter.
- The better-than-expected performance in the first three months
should ease concerns of double digit vacancy rates in Metro Manila
this year. As occupier demand tries to keep up with the upcoming
supply, vacancies may stay relatively elevated in the coming
here to read the full report »
Please contact Michael McCullough or Fred Rara for more information on this