A very low two percent vacancy rate and a limited stream of new office stock in the next few months are enhancing demand for office developments nearing completion at the Cebu IT Park, the Visayan capital’s preferred business district.
Spaces at Mabuhay Tower on the district’s main thoroughfare, for example, are already actively being considered by BPOs and expanding businesses in other sectors even if it is due for completion in early 2018, according to Miguel Manipol, associate director of Leechiu Property Consultants (LPC).
Established in 2015, LPC is a preferred provider of real estate services in the key business districts of the Philippines including the Cebu IT Park. LPC recently set up a branch office in Cebu City to closely monitor developments in the Queen City of the South and to serve the real estate needs of those in other Visayas-Mindanao cities.
In contrast to business districts in Metro Manila where vacancy rates now hover at six percent, the Cebu IT Park and the nearby Cebu Business Park continue to experience sustained demand from BPOs. Both are established information technology zones. Mabuhay Tower was recently named a special economic zone. When it opens its doors this year, its locators will be entitled to tax incentives, which makes it very attractive to BPO tenants, said Manipol.
In addition, Mabuhay Tower is set to serve BPO locators with its floor plates that are 90 percent efficient and are typically 1,000 sqm, with a total gross leasable area of approximately 9,800 sqm.
Moreover, these two Cebu business districts remain active round the clock offering BPO and other workers a wide range of dining and retail options.
“Stores and restaurants have clients even in the wee hours. Public transportation is available 24/7 and people move about freely and securely,” observed Manipol.
On behalf of their workers, potential locator firms are likewise anticipating the opening in 2018 of an Ayala Land lifestyle strip at the Cebu IT Park, which will make the area more attractive to millennials and other employees. Offering close to 43,000 sqm of retail space, Central Bloc will be a short walk from the 15-storey Mabuhay Tower.
At the same time, the two master planned communities are close to residential areas, notably residential condominium developments that have been sprouting in Cebu City since 2010. Owing to their affordability and accessibility, residential units have become popular among the sizable work force of traffic-choked Cebu City.
Manipol observed that even companies based in Manila have been inquiring about spaces at the 15-storey Mabuhay Tower which also offers energy-saving VRF air-conditioning and 100 percent back up power. He explained that economic growth in the Visayas, particularly Cebu City, has been projected to be more robust than in other parts of the country. Thus, firms seeking to optimize opportunities offered by the region are establishing new locations there.
In addition, Cebu is set to benefit from a number of infrastructure projects like the expansion of the Mactan International Airport, the Cebu Bus Rapid Transit and the new Cebu International Port.
All these are likely to heighten the attractions of the city as a global business center.
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