KMC Savills presents their latest
Cebu Office Briefing 2Q 2017. The report provides the latest data
on current and future office stocks, rental rates, vacancies and
the development pipeline for the previous quarter.
- The overall vacancy rate in Cebu jumped to 8.2% from the
previous quarter's 6.9%. This is due to the significant additions
to the office stock - Philam Life Cebu and AD Gothong IT Center.
Despite the Cebu Fringe maintaining relatively high vacancies, the
vacancy rate has slowly declined due to improving demand
conditions. Meanwhile, the very tight supply conditions were
sustained in Cebu IT Park with vacancies held at 1.6% of
- Cebu's rental performance improved to 1.4% YoY in 2Q/2017. Cebu
IT Park led the resurgence in overall rents after outperforming
other submarkets with an impressive 4.3% YoY increase. However, the
declining occupancies in Cebu Business Park dragged rental
performance after decreasing by -0.3% YoY.
- Although the upcoming 100,100 sq m is expected to push
vacancies upward in the remaining quarters, we still expect the
overall vacancy rate to hit slightly above 10.0% at the end of
2017. The outsourcing sector is still expected to drive demand, but
we have observed that non-outsourcing players have entered certain
submarkets which have started diversifying Cebu's sources of
demand. We have yet to factor these in our estimates but may
provide substantial upside to our forecast.
Read full report here.
Please contact Michael McCullough or Fred Rara for more
information on this report.