Average office yields slipped to 6.70% in Q1 2026, down 110 bps QOQ and 112 bps YOY. Prime assets in Makati, BGC, and Ortigas remained stable, supported by scarcity, tenant preference, and stronger amenities. Non-prime assets faced higher vacancy risks and weaker demand, widening the quality gap. With the BSP raising policy rates, borrowing costs are higher, but the resilience of prime offices underscores investor preference for quality, while non-prime assets remain more exposed to cyclical pressures.
Investment MarketBeat Report
Claro Cordero Jr. • 04/05/2026
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