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.
- 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.