COMPANIES in Cebu are increasingly adopting the so-called “flight-to-quality” to create a better working environment.
Flight-to-quality is the strategy of companies to move to newer and larger floor plate buildings.
Gerard Padriga, Cebu general manager at Colliers International, said several firms in Cebu have adopted this investment to “design a modern workplace that enhances the welfare of employees.”
“Work environments have a big impact on productivity,” he said.
A dull, outdated office can affect employees’ morale and productivity, which will likely affect the company’s profitability.
“While occupiers may initially think that relocating to a new and better quality building is more expensive, they must understand that there are more benefits in the long term in the form of lower attrition, better employee engagement and higher retention, which result in higher productivity,” he said.
Now, the game is on looking for better quality offices in the market that enable businesses and their employees to maximize space and reinforce their branding, Colliers said.
“Choosing the right quality of building and location for your office will certainly go a long way in this very dynamic age,” Padriga said.
He noted that better floor efficiency gives more carpetable space for occupiers.
These flight-to-quality buildings are built to be outsourcing-ready, and one critical factor that these companies look at is how many seats they can fill in the carpetable space.
“The more seats they put in the building, the more marketable the building is,” he said.
In recent years, Cebu has seen the rise of these office buildings, owing to the changing demands of outsourcing companies, a major driver of space demand.
These properties should also allow occupiers to install a better air-conditioning system to provide better air quality within the leased premises and lower power consumption with the availability of inverter type air-conditioning systems.
Cebu’s office market has seen a substantial progress over the past few years due to the continuous influx of outsourcing businesses.
The spike in demand has resulted in a more active construction of office towers in the city’s two main districts—the Cebu Business Park and Cebu IT Park.
The developments in these business hubs used to be dominated by local developers, but national players such as Ayala Land Inc. and Filinvest Land Inc. have ramped up their supply pipeline.
The demand has compelled homegrown players to compete and contribute to new supply in the business districts.
These developers include Innoland Development Corp., Cebu Landmasters Inc. and Skyrise Realty, among others.
This is indicative of the evolution of office space requirements in Cebu, which is attributable to the influx of discerning occupants including outsourcing companies.