Cebu office vacancy to grow by 2022
Cebu’s office vacancy is expected to further expand next year due to the increasing supply in the province, according to real estate company Colliers Philippines.
In a webinar, Colliers Philippines Director for Office Services Dom Andaya reported that the current vacancy rate in the Cebu office market stands at 22.3% in the nine-month period. This figure is projected to rise further to 25.8% by year-end and to 26% in 2022.
While net take-up has reached 18,000 square meters (sqm) in Cebu, Colliers is expecting about 145,000 sqm of office space to be completed this year.
About 60,000 sqm of these are already completed within the first three quarters of 2021, while around 80,000 sqm are seen to be accomplished in the next quarter.
On the other hand, about 60,000 to 80,000 sqm of office spaces are expected to be completed annually in the next two years.
Andaya advised developers to still be on the lookout for opportunities and to offer flexible leasing schemes “in preparation for the rebound of the market.”
