Cebu’s developing economy is factored on the increase of real estate demand. The increase in standard of living paves way for the increasing demand of low-cost housing. This is to accommodate the people in the middle class. Meanwhile, the increasing trade and growing business process outsourcing sector have contributed to the rise in the demand for warehouse rental.
Growing trade and logistics businesses have made warehouse rental a growing subsector in the real estate industry. As Cebu becomes more of a hub for trade for importing and exporting goods, businesses in the manufacturing and trading sectors find the need for storage houses as big as warehouses to accommodate the supply of goods for Cebu’s consumption.
The Sunstar article in 2016 has proven that indeed, warehouse rental has become a trend in Cebu. It is something I have found an opportunity for many years I have a real estate broker whose specialty is in high-end rental.
Warehouse rental is also serving the BPO businesses. This may seem surprising but a few BPO companies find that renting in warehouses where there is a need to remodel the area is much cheaper than renting in office spaces in Cebu IT Park. Although the BPO companies may not be able to benefit from the economic zone incentives, the overhead cost in renting in warehouse may be deemed lower compared to office spaces in Cebu’s business parks.
BPO firms have the advantage to expand their operating area in warehouses if there is a need. This may be seen as an advantage to firms who start occupying a small area in warehouse and then have the option to occupy the remaining area if the business is getting better.
Areas in Cebu attractive to warehouse rental
Many warehouses can be found in Mandaue City. Being an industrial city in Cebu, Mandaue has various warehouses and subdivisions with warehouses to accommodate industrial, logistics and wholesaling firms. However, with the increasing demand, the number of available warehouses is also dwindling. Hence, there is a need to construct more warehouses in the city.
Mandaue is an attractive option because of its proximity to Cebu City and Lapu-lapu City. Cebu City has one of the busiest sea port areas in the Philippines while Lapu-lapu City is where the international airport is located.
Other areas for warehouse rental include Consolacion in the north of Cebu and Naga City in the south.
A friend Samuel Lao in his interview with SunStar Cebu stated that the most preferred locations include the City of Naga in the south and the town of Consolacion in the north.
“For warehouses, buyers are looking for as small as 1,000 square meters to multiple hectares,” said Lao, immediate past president of Cebu Real Estate Boards Inc (Cereb).
With the Cebu International Port expected to be constructed in Tayud, Consolacion, this makes the town the most ideal location. The City of Naga is also an attractive location, having positioned itself as the industrial hub of Cebu in the south, according to Lao.
For extensive list of warehouse rental, please check our page on CebuHomes.
