Office space demand continues to soar

CEBU, Philippines — Cebu Business Park and Cebu IT Park, the city’s two main business centers, have continued to see demand for office spaces.

In a recent interview, Chris Narciso, executive vice president at property developer ArthaLand Corp., observed that vacancy rates in CBP and CIP remain low.

That shows, he pointed out, that demand in the market continues to take up space.

He said the limited office space availability indicates continued demand.

According to international realtor Colliers International, Metro Cebu’s office stock reached 1.01 million sq m while vacancy was at 8.9% as of the second quarter this year.

Colliers sees Cebu's office stock reaching 1.04 million sq m before end-2018. This is more than double Metro Cebu’s office stock in 2011.

It sees Cebu's office vacancy hovering between 8% and 9% by the end of the year.

Cebu's office market is expected to get additional supply in the second half of this year amid the rising demand from both outsourcing and traditional tenants.

Colliers expects the delivery of nearly 30,000 sq m of new leasable office space.

Both national and local developers are cashing in on the rising demand from both outsourcing and non-outsourcing tenants.

CBP and CIP were expected to continue to command the highest lease rates across Metro Cebu.

In the second quarter, Cebu IT Park recorded the fastest rise in office lease rates – at 11% to 13%.

“Overall, Colliers believes that Metro Cebu’s competitiveness as a desired BPO investment hub will be sustained as it serves as the gateway to the Visayas Islands. This is complemented by the completion of the new terminal of Mactan-Cebu International Airport. Aside from being a manufacturing base, its economy is being propelled by the BPO industry. Both sectors are major contributors to office space take up in Metro Cebu,” Dom Fredrick Andaya, the company's office services director, earlier said. (FREEMAN)