Makati CBD · The Ten-Year Arithmetic · DMCI Homes
Modelled on a 1,398.20 sqm floor at One Fortis Plaza, 2250 Chino Roces Avenue
Ten years of rent buys you ten years of receipts. Here is the sum, with every assumption written down.
The question behind the question
Every finance director who has renewed a Makati lease has done a version of this sum in their head and then not written it down. This page writes it down — the full ten years, three rent scenarios, the year the rent overtakes the purchase price, and an explicit list of everything the model leaves out.
The subject is a whole floor of 1,398.20 sqm net at One Fortis Plaza, 2250 Chino Roces Avenue, Makati City. List price ₱363,000,000 per floor; ₱326,700,000 on full cash settlement, a 10% discount. Ready for occupancy December 2027.
Assumptions — all of them
A comparison is only as honest as its inputs, so here are all of them. Change any one of these and the answer changes; bring your own numbers to the briefing and the model will be re-run against them.
| Input | Value used | Note |
|---|---|---|
| Floor area | 1,398.20 sqm net | One whole floor at One Fortis Plaza |
| Purchase price | ₱326,700,000 | Full cash settlement, 10% off the ₱363,000,000 list price |
| Lease rate scenarios | ₱1,200 · ₱1,500 · ₱1,800 per sqm / month | A range, not a quote — use your own live proposal |
| Lease escalation | 5% a year, compounding | Annual escalation is standard in Makati leases; the actual rate is in your contract |
| Horizon | 10 years | The point of the exercise; shorter horizons favour leasing |
| Appreciation illustrations | 5% and 7% a year | Illustrative compounding only. Not a forecast, not a guarantee |
Scenario one
Base rent only, escalating 5% a year. Year one is the area multiplied by the monthly rate multiplied by twelve; each subsequent year is the previous year plus 5%.
| Lease rate | Year 1 rent | Year 10 rent | 10-year total | Asset owned at year 10 |
|---|---|---|---|---|
| ₱1,200/sqm/mo | ₱20,134,080 | ₱31,234,566 | ₱253,244,295 | None |
| ₱1,500/sqm/mo | ₱25,167,600 | ₱39,043,208 | ₱316,555,368 | None |
| ₱1,800/sqm/mo | ₱30,201,120 | ₱46,851,850 | ₱379,866,442 | None |
Base rent only. CUSA, utilities, parking and fit-out amortisation are additional and are not modelled. A security deposit (commonly three months) is a cash outlay that is refundable, so it is excluded from cost; any end-of-term restoration obligation is not modelled either.
Scenario two
One payment of ₱326,700,000, then no rent. What varies is only what the floor is worth at the end — and that is an assumption, clearly labelled as one.
The number that decides it
Run the escalating rent forward and add it up until the cumulative total passes ₱326,700,000. That is the year you have handed a landlord the price of the floor — and still do not own it.
| Lease rate | Rent paid by year 10 | Crossover year | What you own then |
|---|---|---|---|
| ₱1,200/sqm/mo | ₱253,244,295 | Year 13 | Nothing |
| ₱1,500/sqm/mo | ₱316,555,368 | Year 11 | Nothing |
| ₱1,800/sqm/mo | ₱379,866,442 | Year 9 | Nothing |
| Lease at ₱1,500/sqm/mo | Own the floor | |
|---|---|---|
| Total cash out over 10 years | ₱316,555,368 | ₱326,700,000 |
| Asset held at year 10 (5% appreciation) | ₱0 | ₱532,159,875 |
| Net position | −₱316,555,368 | +₱205,459,875 |
| Difference in net worth | ₱522,015,243 in favour of ownership, on these assumptions | |
Cash out over ten years differs by only ₱10,144,632 between the two routes at this rent level. Almost the entire swing is the asset — which is exactly the point, and also exactly why the appreciation assumption has to be stated rather than buried.
Full disclosure
A model that hides its exclusions is a sales brochure. These are the items deliberately outside the comparison above, and any of them can move the answer:
Bring your lease proposal to the briefing
Download the floor plate and pricing fact sheet, then send your current lease terms — area, rate, escalation, term — and the model above is re-run against your actual numbers before we meet. Name and email required.
Keep reading
Four whole floors. One owner each.
Four whole floors remain at One Fortis Plaza. Send your current lease terms ahead of the briefing and the ten-year model is run against your real numbers — not the illustrative ones on this page. Acquisitions are subject to DMCI Homes evaluation and approval.
Frequently Asked Questions
Over a ten-year horizon, buying. Leasing 1,398.20 sqm at ₱1,500 per sqm per month with 5% annual escalation costs ₱316,555,367 across ten years and leaves you owning nothing. Buying the equivalent whole floor at One Fortis Plaza costs ₱326,700,000 on full cash settlement — about ₱10.1M more in cash out — and at the end of the ten years you still hold the floor. Below roughly a seven-year horizon the arithmetic tips back toward leasing.
At ₱1,800 per sqm per month it takes 9 years. At ₱1,500 it takes 11 years. At ₱1,200 it takes 13 years. All three assume 5% annual escalation on a 1,398.20 sqm floor and a ₱326,700,000 cash purchase price. After the crossover year every further peso of rent is pure cost against an asset you never acquire.
Deliberately, a lot: association dues and utilities (payable either way), fit-out capital expenditure (payable either way), real property tax and building insurance for the owner, the security deposit and any restoration obligation for the tenant, financing cost if the purchase is not settled in cash, the opportunity cost of the capital, closing fees, and any tax on eventual disposal. The model isolates rent versus purchase price so the shape of the decision is visible; a full net-present-value run against your own cost of capital is prepared at the briefing.
Four cases. If your horizon in Makati is under about seven years. If headcount is genuinely unpredictable and you may need to halve or double the space. If the capital earns more inside your operating business than the floor will return. Or if you simply need less than a whole floor — One Fortis Plaza is sold by the floor and does not subdivide.
At ₱1,200 per sqm per month a 1,398.20 sqm floor is ₱20,134,080 in year one. At ₱1,500 it is ₱25,167,600. At ₱1,800 it is ₱30,201,120. Those are base rent only — CUSA, utilities, parking and any fit-out amortisation sit on top, and most Makati leases escalate annually.
That depends on an appreciation rate nobody can promise. As arithmetic: ₱326,700,000 compounding at 5% a year is ₱532,159,875 after ten years; at 7% it is ₱642,668,348. These are illustrations of a compounding assumption, not a forecast and not a guarantee. Property values fall as well as rise.
Yes — bank financing arranged with your own bank, or DMCI in-house financing. Note that the ₱326,700,000 figure used throughout this page is the full-cash price, which carries a 10% discount off the ₱363,000,000 list. A financed purchase is priced from list and adds interest cost, both of which change the comparison; the briefing runs the model against the actual terms on offer.
Page last updated 2 September 2026. Prices, promo terms and unit availability are confirmed at reservation.