Big things are in store for the Queen City of the South as these top business parks continue to
raise the bar for office space development in Cebu.
Philippine real estate services firm KMC Savills’ Cebu Office Briefings for the fourth quarter of 2017 revealed a pleasant surprise for the province’s office landscape. There was a noticeable surge in net absorption amounting to 67,000 square meters, a sign of recovery from a bleak first quarter in the previous year. All submarkets also saw a drop in vacancies as 2017 closed with an overall vacancy rate of 3.8 percent.
Offices located at Cebu Fringe—areas outside Cebu’s main districts—are particularly doing well, with rent having accelerated from negative 0.7 percent year-on-year during the start of 2017 to 2.0 percent year-on-year by the fourth quarter. Vacancies dropped from 21.3 percent in the fourth quarter of 2016 to 9.4 percent in the same quarter last year. Average rental rate was P551.2/sqm by the end of the year.
One of the areas to watch out for if things go as well this year as they did in 2017 is Cebu IT Park, which is expected to receive the lion’s share of 131,400sqm of new office space this year. But if developments continue, other cyber parks could be right behind. Here are the top business parks in Cebu to keep your eye on.
Cebu IT Park
Undeniably a major development in Cebu City, Cebu Property Ventures and Development Corporation’s (CPVDC) flagship project has also earned worldwide recognition as one of the top business process outsourcing (BPO) hubs.
Cebu IT Park was formerly known as the Asiatown IT Park to provide more emphasis on its base city. The 27-hectare economic zone houses 70 percent of the city’s BPO industry with spaces for offices and relative services and contributed 23,000 jobs to the local workforce in 2011.
Master-planned for sustainability and technological advancement, the development integrates high-rise infrastructure with the local landscape and greenery. Increasing Cebu City’s productivity by providing residential, leisure, and office spaces, its strategic location is easily accessible to Cebuanos as it is connected to the province’s major road networks and supports numerous jeepney routes to date.
Cebu IT Park is open 24 hours and is home to companies such as Convergys, JP Morgan Chase & Co., and Accenture.
Cebu Business Park
Benchmarking mixed-use developments in the Queen City of the South, Ayala Land affiliate Cebu Holdings, Inc. (CHI) is the company behind Cebu’s premier business park. The subsidiary also boasts of the project’s status as the only master-planned subdivision that integrates the business setting into nature.
Cebu Business Park spans 50 hectares and contains world-class amenities, including business spaces, shopping malls, and sports facilities. Ayala Center Cebu, which is the focal point of Business Park, has become the one-stop destination for all things lifestyle and shopping in the booming metropolis.
Strategically located in the upscale part of Cebu City, Cebu Business Park proves to be a major player in the area’s urban and economic growth as its major streets connect the main roads of the northern district.
To date, Cebu Business Park remains to be the largest-operating Philippine Economic Zone Authority (PEZA)-accredited park in the Philippines. With this, CHI’s development is an ideal investment for those seeking opportunities since accreditation under PEZA entitles IT parks to fiscal and non-fiscal incentives.
Companies with offices in Business Park include Cathay Pacific Airways Ltd, Appleone Properties Inc., and BPI Cebu Corporate Center.
Oakridge Business Park
Bordering the cities of Mandaue and Cebu is a park where business and recreation thrives. Ideal for those looking for parks away from the hectic environment of the city center, Oakridge Business Park is a grade-A development by Oakridge Realty Development Corporation where people can enjoy the best of both worlds.
Recognizing the needs of the underserved in Cebu City’s market, Oakridge is perfect for start-up companies due to its humble prices and medium-cut spaces. While relatively smaller than their high-rise counterparts in the city’s busiest districts, Oakridge Business Park’s infrastructures offer PEZA-registered modern spaces for enterprises seeking globally competitive headquarters. Security and general services are also guaranteed for its corporate occupants, such as call center giant TeleTech, Basic Graphics Inc., and Golden ABC Corporation.
Beyond office space, Oakridge Business Park also offers lifestyle amenities such as Rustan’s Supermarket and wellness business such as the Calayan Medical Group.
Ayala Land Inc. continues to break ground in Cebu City when it comes to land development. Central Bloc, its latest integrated mixed-use project, is a 2.2-hectare development within Cebu IT Park for office, retail, and hospitality enterprises.
Cebu is the first city outside of Metro Manila in which the leading property developer takes on mixed-use projects. Central Bloc’s centerpiece-to-be, Ayala Malls Center Bloc, is designed to be a convergence point for millennials and has approximately 43,000 sqm of leasable space. The mall will have five stories of at least 500 shops when it opens within the first quarter of this year.
Philippine leading hotel group Seda is also set to build a 12-story hotel within the development. It will be the first to cater to long-staying guests, and is built to house 58 apartment suites and a roof deck bar.
Two BPO towers, which are operational for 24 hours, will also rise in Central Bloc, which is expected to achieve completion within the next year.
Main photo via Depositphotos