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Local and international SMEs and multinational firms planning to move operations in the Philippines often look to Makati when searching for prime spaces, whether commercial, retail, or residential. This comes as no surprise-Makati is the country's leading central business district (CBD) and the oldest. The CBD has been around for over 50 years, built during the 1960s as the site of the first planned communities in the Philippines: Forbes Park, Urdaneta, San Lorenzo, and Bel-Air.
Today, Makati is home to some of the most iconic developments: Zuellig Tower (one of the first premium green buildings in PH), Ayala Tower One and Exchange Plaza (home of the PSE), the Enterprise Center (architectural landmark) and Greenbelt Mall (one of the first outdoor/park retail developments.)
Because of its popularity and track record, demand for space in Makati has been consistently high the past three quarters. However, this quarter, vacancy rates marginally rose to 2.6% from 2.4% in 4Q/2015 as 3,100 sq m of previously occupied spaces became available for lease.
Despite the uptick in vacancy rate, the average rental rate grew by 1.0% QoQ and 3.4% YoY to Php 990.4 per sq m/month. At the end of the quarter, Makati CBD maintained a strong rental premium relative to other submarkets having an upper rental rate of Php 1,450 per sq m/month.
The absence of new supply during the year is seen to facilitate rental growth, further strengthening Makati CBD's position as the prime central business district in Metro Manila.
|Insular Life Building
|20,120 sq m
|1,623 sq m
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