For Manila-based companies: Cebu remains top favorite expansion site

CEBU, Philippines — Cebu remains the top favorite relocation or expansion site for companies headquartered in the capital region.

In a latest property update conducted by Colliers Philippines, it showed that provinces outside the capital region turned out to be the most popular options for tenants expanding or relocating led by Cebu.

In first half of 2022, Colliers recorded 82,000 sq metres (882,300 sq feet) of office space deals closed outside of Metro Manila. Cebu captured 34 percent of the transactions followed by Davao (28 percent) and Pampanga (23 percent).

On the other hand, about 60 percent of occupiers are still looking for options in Metro Manila.

Colliers recommends that companies planning to take up space in business districts across Metro Manila consider flight-to-quality options at lower rents. Landlords should proactively tap this demand and be more accommodating to tenants’ requirements.

Colliers second quarter 2022 property market briefing polls yielded mixed results. Some companies are still taking a wait-and-see approach, having yet to finalize their expansion or relocation plans.

However, Colliers noted that it continues to see sustained interest in hotel and residential developments outside Metro Manila.

“We are optimistic about the leisure sector, with the survey responses reflective of positive sentiment across the country,” Colliers stated.

Based on Colliers’ view, rising inflation and interest rates will constrict the property market’s growth, but stakeholders should be quick to capture opportunities, including: strategic landbanking in north and south Luzon, taking advantage of end-user demand; offering promos for ready-for-occupancy condominium units especially as Metro Manila condominium take-up rebounds; and proactive promotion of new office buildings to tenants expanding or relocating for a flight-to-value.