THE AVERAGE rent for office spaces in Taguig City is now more expensive than those in Makati City, according to a report by Cushman & Wakefield Philippines.
“Fueled by the high asking rents of newly completed buildings, as well as the jump in the rates for buildings that were previously fully-leased, average Taguig City rental figure for year-end 2018 has gone up by 14% YoY (year-on-year) to P1,173 per square meter/month (sq.m./mo), overtaking for the first time that of Makati City at P1,160 sqm/mo with a recorded increase of just 4.3% YoY,” the commercial real estate services company said in its MarketBeats Q4 2018 report.
Cushman & Wakefield identified three significant projects under construction in Makati and Taguig as the NEX Tower, Eco Prime and One Ayala Tower.
In Makati, NEX Tower, a project of NEX Development Group, is slated to be completed within the first quarter of 2019. Ayala Land Inc.’s One Ayala Tower is targeted to be completed by the first quarter of 2022.
Alpha Plus Property Holdings Corp. is on track to complete Eco Prime in Taguig by the first quarter of 2019.
While rents in Makati and Taguig reached the P1000 per sq.m. level, other business districts lower rents such as Pasay City (P881 per sq.m./mo.; Quezon City (P839 per sq.m./mo.); Parañaque City (P838 per sq.m./mo.; Muntinlupa City (P800 per sq.m./mo.); Mandaluyong City (P767 per sq.m./ mo.); and Pasig City (P734 per sq.m./mo.).
On the average, average rent in Metro Manila increased by 7% year-on-year to P899 per sq.m./mo.
In terms of vacancy rate, Cushman & Wakefield noted that Mandaluyong City recorded the highest vacancy at 11.4% among the submarkets. Quezon City followed with a 9% vacancy rate; Taguig City with 4.7%; Pasig City with 2.9%; and Makati City with 1.4%.
Muntinlupa City, Parañaque City, and Pasay City recorded the tightest vacancy with 0.1% for Muntinlupa City, and 0.0% for the last two. Overall vacancy rate recorded in Metro Manila is 3.9%. — Vincent Mariel P. Galang