Cebu office space demand to continue in 2024

CEBU, Philippines — Sustained demand for office space in Cebu is seen to persist in 2024, as companies, particularly the Business Process Outsourcing (BPO) sector continuously identify Cebu as their preferred expansion site.

According to Colliers Philippines, Cebu’s business districts will remain attractive among BPOs looking for expansion sites in the city and its environs.

“In our view, now is an opportune time to haggle for more attractive lease rates given the substantial supply in Metro Cebu. For more discerning locators such as BPOs and multinational firms, this is a good time to invest in a high-quality and expansive office space. This is particularly important for locators planning to expand employee count in the near term,” said Colliers Philippines director and head for research, Joey Roi Bondoc.

In the first nine months of 2023, Colliers recorded 149,500 sq meters (1.6 sq feet) of provincial transactions, up from 145,000 sq meters (1.6 million sq feet) posted a year ago.

Colliers recommends that developers complete delivery schedules of their projects as we have observed increasing inquiries from outsourcing firms especially in Cebu, Iloilo, Bacolod, Bulacan, and Laguna.

“We also encourage developers to be on the lookout for potential demand in key cities such as  Dagupan, Urdaneta, Malolos, General Santos, Tarlac, Cabanatuan and Puerto Princesa as these locations are touted as high potential areas for transformation into “digital cities” by 2025 according to IBPAP.

Colliers continues to receive leasing queries for these locations, he pointed out.

Greater focus on tenants’ ESG and DEI goals

With the heightened importance of sustainability and inclusivity in the workplace, landlords must align with their tenants’ Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) objectives.

Colliers encourages landlords to be more proactive in implementing and promoting ESG and DE&I elements within building amenities and common areas. This can be in the form of green features and certifications, landscaping, renovation of shared facilities, and landlord-initiated events that support the wellness and productivity of employees. Colliers believes that

Cebu-based landlords should lead in helping their occupants realize their DEI objectives as Cebu is a prime business location in the Philippines, Bondoc urged. — (FREEMAN)