Demand for office space in Cebu to rise – Colliers

Global property research firm Colliers International Philippines sees demand for office space in Cebu to rise as it remains attractive destination for industrial and manufacturing investments.

Alongside with the robust appetite for residential properties, the demand for office and facilities space will continue to push up the real estate development growth in the province, further attracting more property developers from outside Cebu to expand their investments here.

In his presentation during the recently concluded 2nd Cebu Property Summit held at SM City Cebu Trade Hall, Colliers International Philippines research manager Joey Roi Bondoc reported that outside of Luzon, Cebu remains as a major hub for industrial operations.

“We see the demand for industrial space and facilities being sustained by the continued dynamism of Cebu's export sector," Colliers said in its latest report.

It also predicts Cebu's annual export bill being driven by economic recovery of Philippines' top trading partner, the United States; implementation of trade deals with neighboring ASEAN economies and the Eurozone.

Growing manufacturing investments from Japan and China are also expected to fuel the demand for office and large industrial spaces in Cebu in the short term.

These developments, Collier explained should contribute to greater absorption of space and increased utilization of facilities within Cebu's industrial parks.

Currently, some investors are building warehouses in different parts of Cebu to accommodate the requirements from foreign investors engaged in manufacturing or trading.

“We see Cebu's contribution to the country's economic output surging over the next five to ten years given its rising attractiveness as an investment hub and the development of crucial air and road infrastructure projects which significantly bring down the cost of doing business in the region," said Bondoc.

He emphasized that Cebu will be in the frontline to benefit in the Duterte government's decentralization thrust or the spread of economic opportunities outside Metro Manila.