According to the latest global real estate report done by Colliers International, the usage of commercial properties in Cebu, Philippines has tremendously grown as the rate of vacancy has fallen from 5.5 percent in 2011 to 2.8 percent this year.
The report said local and major developers posted 80,000 square meters of new office space in their portfolios last year, which will lead to a total to 150,000 square meters when completed in 2014.
The drop in vacancy rate for office real estate in Cebu is said to be driven by the rapidly growing volume of new business process outsourcing (BPO) companies and investors in the province.
Meanwhile, the report noted that the drop in vacancy rate is mainly caused by the centralization of office space in locations like the 74-hectare commercial space called the Cebu Park District, which is a collaboration between Ayala Land, Inc. and Cebu Holdings, Inc.
The monthly average leasing rate in Cebu Business Park last year is P450 per square meter. In the upscale Cebu IT Park, the monthly rent varies - P500 to P700 and P300 to P500 per square meter.
The Cebu Park District is said to be attracting more offshore outsourcing firms to the province, according to the global real estate market.