KMC has the expertise to assist companies in securing serviced offices and coworking space in Cebu. Our flexible workspaces, with private rooms that can house 3-200 team members and collaborative spaces for 3-15 members, are perfect for both startups and multinationals in Cebu that are hoping to disrupt their respective industry. Cebu is one of, if not the most developed province in the country. The province acts as the centerpiece of commerce, trade, education, business, and industry in the central and southern parts of the Philippines.
Various foreign and multinational companies from the call center, IT, and BPO industries are beginning to broaden their reach from Manila to Cebu. In fact, some companies are skipping Manila, choosing to take advantage of cheaper Cebu private offices. Additionally, energy costs are cheaper in Cebu, and English proficiency in the province is reportedly better than in Manila.
Like Manila, the province is shifting its focus on IT office buildings, cyber parks, and business centers with prime office space and coworking spaces for rent in Cebu to attract even more BPO companies.
KMC Savills' 4Q/2017 assessment of Cebu's office space market show primarily positive figures. The Cebu market exceeded expectations as net absorption surged to 67,500 sq m in 4Q/2017. All the submarkets showed lesser vacancies, resulting in an overall vacancy rate of 3.8% by the end of 2017.
The Cebu Fringe had an impressive showing after ending the year with a vacancy rate of 9.4%, a massive uptick from 21.3% in 4Q/2016. Much of the performance can be attributed to Mactan Newtown after Tower One Plaza Magellan was fully leased out upon completion.
With the remarkable net absorption figures, 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 also showed an upward trend after accelerating 2.0% YoY in 4Q/2017 compared to a decline of -0.7% in 1Q/2017.
The Cebu IT Park is anticipated to receive more than half of the 131,400 sq m of new supply in 2018. The new office buildings with private rooms and flexible workspaces for rent are not expected to put too much strain on the submarket as vacancies are forecasted to rise just above 6.0% in total stock. In subsequent years, the vacancy rate may rise to double digits if demand begins to decline, but given the surprise in 2017, we expect demand to remain robust.
Private offices and flexible office spaces for rent in Cebu feature lower energy costs and quality workmanship, making it ideal for any business setup for both multinational corporations and local or foreign businesses. Contact us today for all your inquiries.
Contact KMC MAG Group for Cebu