Manila CBD office lease rates up by 2%

The Metro Manila Central Business Districts offices lease rates have surged up 2. 35 percent in the 3rd Quarter of 2016, real estate consulting firm CBRE Philippines said.

In a market report bannered "The Beginning of “The Glory Age of Infrastructure”", CBRE noted that amidst uncertainties in the new administration, the office sector in the country remains bullish.

In the 3rd quarter alone, overall vacancy rates dropped to 1.52 percent from the 2.25 percent in the previous quarter. This is triggered by the continued inflow of foreign investors and the growing global BPO companies.

"With the entry of new global partners, the take-up rate of office spaces is expected to increase not just in Metro Manila but also in other cities outside the Metro," the CBRE added.

Grade A building rates grew to PhP 1,039.33 per sq. m from PhP 902.38 per sq. m year-on-year while Prime Buildings take up rates rose to PhP 1,432.07 per sq. m from the previous PhP 1,294 per square meter year-on-year.

Office lease in Bonifacio Global City inched up to PhP 929.99 per sq. m higher by 1.76% quarter-on-quarter. Furthermore, rates for Ortigas Center rose to PhP 627.43 per sq. m from PhP 624.46 per sq. m y-o-y while Bay City’s leasing rates increased to PhP 658.75 per sq. m from PhP 648.13 per sq. m year-on-year.