Office: Prime and Grade A vacancy edged down to 19.0% from 19.1% quarter-on-quarter, supported by sustained leasing and limited new supply. Leasing reached 142,000 sqm, led by traditional occupiers and IT-BPM firms. CBDb-based developments posted 11.1% vacancy versus 26.2% in decentralized markets, reflecting a continued flight-to-quality preference. Competitive landlord pricing lowered average headline rent to PHP 906 psf per month.
Industrial: Industrial investment gained momentum this quarter. PEZA-approved investments reached approximately PHP 156.5 billion, up 75.76% quarter-on-quarter. National industrial estate vacancy rose to 3.41% from 2.48% in Q2 2026, reflecting newly completed inventory rather than weaker demand. Build-to-suit pipelines expanded 63%, underscoring occupiers' preference for customized, energy-efficient, and powered-land specification.
Investment: Office gross yields averaged 6.85% in Q3 2026, up 12 basis points QoQ, as the BSP maintained a contractionary stance amid 6.5% quarterly average headline inflation growth. Rising financing costs are accelerating price discovery in secondary assets, creating opportunities for well-capitalized investors to acquire quality properties at more attractive valuations. Investment activity remained concentrated in resilient sectors, including prime office, industrial and logistics, hospitality, and REIT-backed assets, where long-term demand drivers remain intact.
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