Office Market Outlook

M A Y 2021

638,550 km² 13.9 Million Estimated population in Metro Total Leasable Area Manila as of 2020

3 MAJOR CBDS Makati - Bonifacio Global City - Ortigas Center

MAKATI TAGUIG PASIG Makati CBD McKinley Hill Ortigas Center Rockwell Center Bonifacio Global City Capitol Commons Circuit Makati Arca South Frontera Verde McKinley West Arcovia City Veritown Fort

BAY CITY ALABANG QUEZON CITY Newport City Filinvest City Araneta Cyberpark SM MOA Complex Northgate Cyberzone UP Town Center Filinvest Cyberzone Madrigal Business Park Eastwood City Meridian Park Alabang West UP Technohub Aseana City Eton Cyberpod Centris Westside City Vertis North Metropolitan Business Park Park Links Bridgetowne

2nd Quarter 13% 2nd Quarter 2020 vacancy 2021 across all Metro Manila business districts

906,223.61 SQM TOTAL SUPPLY 849,620.08 SQM

557,276.14 SQM AVAILABLE SUPPLY 778,336.88 SQM

39% LEASED 8%

1,175 PHP/SQM AVERAGE RENT 1,115 PHP/SQM

© 2021 Lobien Realty Group, Inc. All rights reserved. 3 Metro Manila Supply vs. Leased PREVIOUS SUPPLY (GLA) PREVIOUS DEMAND (GLA) Total of 12,155,791.70 sqm supply from 1970 – 2020. 2012 – 396,460.83 sqm 2016 – 559,496.71 2013 – 362,611.63 sqm 2017 – 998,486.58 2014 – 611,027.17 sqm 2018 – 932,630.63 Legend: Supply - Actual Demand - 2015 – 621,673.38 sqm 2019 – 753,775.19 600,000.00 2016 – 583,648.10 sqm 2020 – 355,233.53

500,000.00

400,000.00

300,000.00

200,000.00 Square Meters Square

100,000.00

0.00 Q1A A2Q2 A3Q3 A4Q4 Q1B B2Q2 B3Q3 B4Q4 Q1C C2Q2 C3Q3 C4Q4 Q1D D2Q2 D3Q3 D4Q4 Q1E E2Q2 E3Q3 E4Q4 Q1F Q2F2 Q3F3 F4Q4 Q1G G2Q2 G3Q3 G4Q4 Q1H H2Q2 H3Q3 H4Q4 2017 2018 2019 2020 2021 2022 2023 2024 SUPPLY (sqm) 1,168,164.79 1,039,693.45 1,075,850.83 627,877.98 849,620.08 808,084.42 617,401.34 96,300.00 LEASED (%) 85% 90% 70% 57% 8% 14% 0% 0% AVAILABILITY PER QUARTER (SQM) 2017 2018 2019 2020 2021 2022 2023 2024 Q1 21948.38 3,269.64 44,478.54 55,536.32 250,661.99 177,376.90 241,033.95 0

Q2 17627.02 33,309.71 170,481.23 54,985.94 317,275.08 90,549.00 0 0

Q3 32439.85 19,012.25 58,353.15 30,920.78 138,760.21 229,514.48 30,323.00 0

Q4 97622.96 51,471.22 48,762.72 131,201.41 71,639.60 193,782.13 343,600.00 96,300.00 *Percentages of leased spaces from 2021-2024 are based on pre-committed data.

© 2021 Lobien Realty Group, Inc. All rights reserved. 4 Metro Manila Office Supply: 2.5 million sqm in the Pipeline TOTAL VACANCY DISTRICT CURRENT SUPPLY PIPELINE SUPPLY Until 2020 2021-2028 (Current & Pipeline Supply)

Makati 1 2,841,449.01 3 407,365.60 3 532,447.09

Taguig 2 2,732,002.17 244,041.97 469,157.17

Pasig 3 1,979,158.26 251,967.14 445,078.52

Mandaluyong 770,394.92 116,095.74 367,926.58

Quezon City 1,740,931.12 1 506,786.15 1 785,765.05

Alabang 764,823.10 194,007.71 272,854.30

Bay City 864,676.27 2 452,527.46 2 562,617.13

Paranaque 211,430.11 177,747.61 204,164.95

© 2021 Lobien Realty Group, Inc. All rights reserved. 5 Cities Snapshot Average Rental Rates and Land Values AVERAGE RENT AVG. RENTAL RANGE DISTRICT 1Q 2020 1Q 2021 LAND VALUE RANGE Makati CBD – Prime 1,790 -4% 1,400 – 1,950

Makati – Grade A 1,360 -18% 1,350 – 1,600 400,000 – 1,000,000

Makati – Grade B 1,050 -1% 900 – 1,300

Taguig – Prime 1,550 -2% 1,400 – 1,650

Taguig – Grade A 1,450 -13% 1,150– 1,600 400,000 – 1,000,000

Taguig – Grade B 1,160 -1% 1000 – 1,300

Pasig 820 -4% 500 – 1,000 280,000 – 350,000

Mandaluyong 770 -2% 600 – 950 120,000 – 230,000

Quezon City 820 -3% 600 – 1200 170,000 – 230,000

Alabang 860 2% 900 – 975 250,000 – 400,000

Bay City 1,300 -11% 1,000 – 1,500 300,000 – 500,000

Office Demand in Metro Manila | As of 2020

16% Online Gaming

41% Business Process Outsourcing 43% Other Industries

IRELAND POLAND

INDIA PHILIPPINES

VOICE BPO BRAZIL #1 According to IBPAP

ARGENTINA NON-VOICE, #2 COMPLEX SERVICES

Over 800 IT-BPO 143,000 sqm Companies and global in-house centers Top 6 - Tholons Digital Nation #4 Manila and #15 Cebu City Recorded take-up in 2020 (serving North America, Asia and Europe) Services Globalization City Index 2020 Top 100 Super Cities

1.03Msqm Total office space occupied by offshore gaming industries since 2016

OFFSHORE GAMING TAKE-UP SINCE 2016 800 700 600 500 400 300 9% THOUSANDS 200 POGO share to total leasable office stock as to date 100 0 2016 2017 2018 2019 2020 Leased (sqm) 85,000 311,000 303,000 442,000 90,000

BAGUIO LAGUNA / CAVITE DUMAGUETE Baguio – Ayala Land Technohub Greenfield City Suntech iPark Dumaguete Business Park PCH IT Center Nuvali Vista Alabang LinkSy IT Park Southwoods City Suntrust Ecotown Tanza LP IT Park PAMPANGA South Forbes Cyberpark Hamptons Caliraya DAVAO 80 Clark Special Economic Zone Maple Grove Evo City Philexcel Business Park Twin Lakes Damosa IT Park Bertaphil Business Park Lanang IT Park Clark Green City CEBU Davao Park District Alviera Cebu Business Park Mactan Newtown Matina IT Park Capilion Cebu IT Park Citta De Mare Azuela Cove Global Gateway Logistics City (GGLC) LPU Town Capital Town Azuela Cove Capital Town

Cebu IT Park

METRO MANILA Eton Cyberpod Centris BULACAN Century City Rockwell Center Vertis North BACOLOD PDC Technopark Lopue’s South Square IT Park Circuit Makati Filinvest Cyberzone First Bulacan IT Park San Antonio Park Square Arca South The Meridian Park Bulacan Cyber Park The Block IT Park Mckinley West Newport City Bulacan Business District Central IT District Park Uptown Bonifacio SM MOA Complex The Upper East Mckinley Hill Metropolitan Business Park ILOILO Northill Gateway Bonifacio Global City Aseana City Atria Park District Ortigas Center Filinvest City Iloilo Business Park Frontera Verde Northgate Cyberzone RIZAL Woodside City Madrigal Business Park Eastland Heights Capitol Commons Alabang West Highland City Araneta Cyberpark Arcovia City Bridgetown Westside City Iloilo Business Park Veritown Park Links UP Technohub Eastwood City © 2021 Lobien Realty Group, Inc. All rights reserved. 10 Provincial Supply Analysis

2nd Quarter 23% 2nd Quarter 2020 vacancy 2021 across all provincial business districts

233,332.05 SQM TOTAL SUPPLY 301,818.66 SQM

218,652.13 SQM AVAILABLE SUPPLY 197,220.21 SQM

6% LEASED 35%

620 PHP/SQM AVERAGE RENT 620 PHP/SQM

AVERAGE RENT AVG. RENTAL RANGE DISTRICT 1Q 2020 1Q 2021

Cebu 650 -3% 500-1,000

Bacolod 480 4% 480-500

Iloilo 600 0% 550-650

Davao 625 -6% 450-500

Laguna 640 -2% 500-770

Cagayan de Oro 550 0% 550-600

Cavite 700 3% 550-950

Pampanga 665 2% 500-950

© 2021 Lobien Realty Group, Inc. All rights reserved. 12 Provincial Manila Office Supply: 775,000 sqm in the Pipeline TOTAL VACANCY DISTRICT CURRENT SUPPLY PIPELINE SUPPLY Until 2020 2021-2024 (Current & Pipeline Supply)

Cebu 1 1,033,086.10 1 371,369.07 1 604,630.19

Davao 2 282,464.64 20,060.40 48,254.99

Pampanga 3 249,905.63 2 138,163.51 2 375,186.52

Cavite 118,138.56 32,792.06 33,497.63

Laguna 135,352.16 10,000.00 42,538.73

Bacolod 82,468.37 28,555.70 45,370.38

Iloilo 160,533.94 3 109,111.88 3 115,046.62

Cagayan de Oro 33,423.53 - 15,933.78

1. Metro Manila 1 2. Metro Cebu 3 3 3. Metro Clark 7 1 10 4. Metro Bacolod 4 9 6 5. Davao City 8 6. Iloilo City

Next Wave Cities 6 4 2 Next Wave Cities will be the alternative investment hubs outside Metro Manila. These Cities promote country-wide improvement, create job opportunities and economic advancement in their region. 5 1. Baguio City 6. Lipa City 2 2. Cagayan De Oro City 7. Malolos City 5 3. Dagupan City 8. Naga City 4. Dasmarinas City 9. Sta. Rosa City 5. Dumaguete City 10. Taytay Rizal

The Lobien Realty Group (LRG) is a vibrant and determined team of visionary realty solution specialists. With their dynamic synergy of complementary strengths, LRG experts offer a global-local realty market proficiency and comprehensive but customized real estate servicing that drive REAL growth for their client’s spaces.

Project Leasing Tenant Solutions Property Acquisition and Sales

Benefit from our up-to-date listing of other buildings in Experience our client-focused and end-to-end tenant Our own team and a pool of external associates and the market for an accurate competitive scan and access representation service aimed at looking for the most professional group of lawyers, bankers and other real our vast client/tenant base across industries that will be suitable office space for our clients. We subscribe to estate specialists will make sure that your engagement best suited to your property resulting in your desired the knowledge that office space is not only a good in real estate properties and other assets acquisition tenant mix. Rest assured that the final lease contract reflection of company culture and values, but it is and disposal will be a very successful and rewarding shall consider BOTH PARTIES' best interest for a long- foremost a main driver of productivity and business activity. term landlord-tenant relationship. success. Hence, we strive to fulfill our clients’ real estate requirements and objectives by having an in- Whether it will be a straight sale transaction, an Our past experience of handling more than a hundred depth understanding of their specific needs to find the investment that shall require a more complex joint office and commercial buildings in major business most appropriate location for their business activity. venture partnership or any other form of structure, your districts of the Philippines under exclusive project LRG team will strive to provide the most effective leasing arrangements has given our core team an strategy and a very transparent advisory services for unmatched experience and valuable insights in your real estate investment venture. undertaking such a complex but highly rewarding investment activity for our landlords.

The team comprising the Lobien Realty Group is a pioneer in the Landlord Representation sub-industry in the Philippines. Landlord Representation started as an industry segmentation strategy that focused on partnering with investors and landlords, on an exclusive basis, to optimize their real estate investments in office buildings. The team’s performance allowed their firm to have close to 70% of the landlord leasing market/exclusive project leasing several years after its inception.

The founding partners of the Lobien Realty Group have close to a decade’s worth of experience working together in a Fortune 500 real estate consulting firm and one of the largest real estate companies in the Philippines representing its Landlord Representation Group. For almost a decade, the team successfully handled more than 100 exclusive arrangements/ project leasing projects for prime and grade A buildings across the country’s major business districts, leasing out more than 2 million square meters of office and commercial space or close to Php 1 billion worth of real estate transactions.

The same core players have put up Lobien Realty Group and bring with them the same passion, dedication and performance in their new Firm.

Sheila Lobien Chief Executive Officer (0918) 858 2468 | (0917) 858 2468

Jericho Linao Chief Operating Officer (0999) 228 0120 | (0917) 920 9085

Steph Ng Associate Director (0999) 228 0155