KMC Savills is pleased to present
Cebu Office Briefing for 3Q 2017. The report provides
current data on rental rates, vacancies, and supply pipeline in
Cebu's central business districts and submarkets for the previous
- The Cebu office market recovered
in 3Q/2017 after the Cebu Business Park experienced a stark decline
in vacancies. There were no new additions to supply during the
quarter and net absorption further strengthened to 22,314 sq m.
Conditions in the Cebu Fringe were relatively unchanged with the
vacancy rate maintained at 17.1%. However, among the townships in
the Fringe, we observed significant leasing activity in Mactan
- With market conditions tightening
in Cebu Business Park, rents recovered modestly from the negative
growth posted last quarter. In addition, the very low vacancy rate
in Cebu IT Park was sustained causing rentals to further improve.
Average rents in the offshoring and outsourcing hub rose to Php
584.9 / sq m per month after posting a strong 4.8% YoY
- Vacancies are expected to spike
again next quarter as an additional 100,100 sq m of new GLA is
expected to be completed. The Cebu Business Park is anticipated to
add three more buildings next quarter - amounting to 42,700 sq m of
GLA. Despite the submarket's impressive performance this quarter,
the vacancy rate is expected to rebound to around 8.0% by the end
of the year.
Click here to read the full report »
Please contact Michael McCullough or Fred Rara for more
information on this report.