KMC Savills is pleased to
latest Cebu Office Briefing for 4Q
2017. The report provides current data on rental
rates, vacancies, and supply pipeline in Metro Manila's central
business districts and submarkets for the previous quarter.
- Cebu surpassed expectations as net absorption surged to 67,500
sq m in 4Q/2017. Vacancies dropped in all submarkets which resulted
to an overall vacancy rate of 3.8% by the end of 2017. The Cebu
Fringe had an impressive run after ending the year with a vacancy
rate of 9.4% from 21.3% in 4Q/2016. Much of the performance was
driven by Mactan Newtown after Tower One Plaza Magellan was fully
leased out upon completion.
- With the notable net absorption, rental growth in Cebu
continued to recover following an increase of around 3.4% YoY. It
ended the year with an average rental rate of Php 551.2 per sq m /
month. Rents in the Fringe were also on an uptrend after
accelerating 2.0% YoY in 4Q/2017 compared to a decline of -0.7% YoY
- In 2018, Cebu IT Park is anticipated to receive more than half
of the 131,400 sq m of new supply. The new office buildings are not
expected to put too much strain on the submarket as vacancies are
forecasted to just rise above 6.0% of total stock. In subsequent
years, the vacancy rate may rise to double digits if demand begins
to weaken, but given the surprise in 2017, we should expect demand
to remain robust.
Click here to read the full report »
Please contact Fred Rara or Michael McCullough for more
information on this report.