Office Sector: New supply as Cebu demand diversifies
Outsourcing and offshore gaming companies continue to account for the bulk of office space demand in Cebu. Meanwhile, absorption from English tutorial centres is gaining ground. Colliers recommends that developers be strategic with their office projects. We encourage them to provide flexible office cuts to English language centres and explore parcels of developable land around the proposed infrastructure projects which form part of the government’s ‘Build, Build, Build’ push. Meanwhile, occupants should lock in available space in the Cebu IT and Cebu Business Park and their outskirts and consider new space in Mandaue, especially for non-outsourcing firms.
Residential Sector: Cebu remains a key residential hub outside Manila
Business and employment opportunities generated within Cebu City propel the demand for both vertical and horizontal residential developments. The demand for condominium units is also being fueled by the influx of high-spending foreign tourists. The condominium market remains dynamic and developers need to be strategic in launching new projects. Additionally, they should target foreign tourists and further explore Mactan’s potential for residential projects; explore alternative House and Lot (H&L) sites; capitalize on upcoming infrastructure projects; and launch more resort-style condominiums.
Malls to be developed by major developers within their own townships should account for 90% of new retail space from 2019 to 2021. Metro Cebu remains a key retail destination outside Manila as it is the second largest outsourcing hub in the country and is among the major sources of overseas Filipino workers (OFWs). The rising purchasing power of households and employees is enticing retailers to occupy more space.
With a vibrant retail landscape, Colliers encourages developers to:
> Explore retail demand of developments in townships
> Build more space in Mandaue
> Differentiate retail offerings
> Explore partnerships between national and homegrown firms
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