Leechiu Property Consultants (LPC) released a report showing a 50% drop in the office lease rates in Ortigas Center & Mandaluyong, Bay Area and Alabang from Php 600\/sqm to Php 300\/sqm once POGO operations are completely closed. Cavite, meanwhile, will see a 38% decline in rental rates to Php 250\/sqm while Makati\u2019s rental rates will drop to Php 700\/sqm for a 22% decline.<\/p>\n\n\n\n
Our View:<\/strong> We follow up on our note last Friday when we first mentioned the delayed recovery in office vacancy rates. Office vacancy rate is expected to peak this year at 18.2% and much lower at 17.4% should POGO take-ups play out as expected.<\/p>\n\n\n\n This view appears to be in jeopardy given the current stance of the DOF and Senator Grace Poe on the presence of POGOs in the Philippines. While this will delay the full recovery of Philippine property developers, we think the projected decrease in rental rates may attract more BPO locators and provide a more stable tenancy base moving forward.<\/p>\n\n\n\n ALI, MEG and RLC now have minimal exposure to POGOs but the lack of upward pressure on rental rates will prolong their recovery. We stay underweight on the sector.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-317505","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=317505"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317505\/revisions"}],"predecessor-version":[{"id":320496,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/317505\/revisions\/320496"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=317505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=317505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=317505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}