KMC Savills is pleased to present the latest Cebu Office Briefing for 1Q
2017. The report provides current data on rental
rates, vacancies, and supply pipeline in the Cebu Fringe, Business
Park and IT Park for the quarter.
- In 1Q/2017, vacancies in Cebu improved to 6.9% from
8.9% last quarter, as the additional supply was substantially
overtaken by net absorption. Construction delays postponed a
significant amount of new supply for the quarter, with just the
MDCT building adding 5,000 sq m.
- Rental growth experienced a setback after posting
1.2% YoY growth and marginally increasing the average rental rate
to Php 538.2 per sq m/month. Market expectations of a considerable
stock increase in the coming quarters and the high vacancy rate in
the Cebu Fringe put significant pressure on rents. However, the
market's decreasing vacancy rate gradually improved rental
performance as QoQ growth returned to positive
- 132,000 sq m of additional supply is forecasted to enter the
market until the end of 2017 with the anticipation of a modest
upward push in vacancies. Furthermore, Cebu's outsourcing and
offshoring sector has consistently experienced healthy growth and
expected to absorb new supply with ease - especially in Cebu IT
Park and Cebu Business Park.
Click here to read the full report »
Please contact Fred Rara or Michael McCullough for more information on this