KMC Savills Research Cebu Office Briefing 4Q 2016

Cebu
KMC Savills Research Cebu Office Briefing 4Q 2016

KMC Savills is pleased to present the latest  Cebu Office Briefing for 4Q 2016. The report provides current data on rental rates, vacancies, and supply pipeline in the Cebu Fringe, Business Park and IT Park for the quarter.

Key Highlights:

  • Vacancies improved to 8.9% by the end of 2016 from 12.5% in 2015. Take-up outpaced new supply with net absorption at 46,100 sq m in 2016. However, a number of building completions were pushed back to first quarter of 2017, limiting new office supply to 14,300 sq m in 4Q/2016. In total, gross leasable area added in 2016 was just 23,200 sq m compared to the previous year's 145,000 sq m.
  • Rental growth slowed to 3.7% YoY in 4Q/2016 and ended the year with an average rent of Php 536.3 per sq m/month. Vacancies in Cebu Business Park and Cebu Fringe weighed down rents after growth decelerated by 12 basis points.
  • In 2017, 102,800 sq m of additional office space is estimated to enter the market and could prompt vacancies to increase again. Downward pressure on rental growth is expected especially on buildings in the Cebu Fringe where the vacancy rate is forecasted to remain above 20% in the succeeding quarters. The Cebu IT Park will be the market's bright spot with vacancies to remain low despite the addition of Mabuhay Tower in 2Q/2017.

Click here to read the full report »

Please contact Antton Nordberg or Michael McCullough for more information on this report.