LEASE rates have remained affordable in Cebu’s economic zones, with land values identified as main driver of industrial rents.

In a research note, property consultancy firm Santos Knight Frank said that as of the first half of 2019, around 50,000 square meters (sq.m) of industrial space were opened for lease in the various standard factory buildings across Metro Cebu, particularly in Mactan Economic Zone (MEZ) 1, MEZ 2 and Cebu Light Industrial Park (CLIP).

Manufacturing economic zones in Central Visayas are concentrated in Cebu, which is currently home to seven Philippine Economic Zone Authority-registered ecozones. These have an estimated total area of 825.22 hectares.

“Lease rates of industrial space within Mandaue City and Cebu City were considerably higher compared to other areas in Cebu, due to the proximity to distribution areas and high land values,” Santos Knight said in its market research.

The average lease rate of warehouse spaces in Metro Cebu was pegged at P180 per sq.m. per month. Warehouse rents ranged from P120 to P270 per sq.m. a month.

Of all cities in Metro Cebu, the property agency identified Mandaue City to post the highest monthly lease rate of P190.78 per sq.m.

Cebu City closely followed Mandaue City in terms of average lease rate at P189.87 per sq.m. per month.

In Lapu-Lapu City, warehouse rents averaged P143.75 per sq.m. per month.

Industrial land values in Metro Cebu was close to P40,000 per sq.m. on an average, and went from as low as P4,000 per sq.m to as high as P170,000 per sq.m.

Operating economic zones in Cebu include the CLIP, South Road Properties, MEZ 1, MEZ 2, MRI Ecozone, New Cebu Township and West Cebu Industrial Park. (CSL)