AMID the twin challenges—the Covid-19 pandemic and onslaught of Typhoon Odette—property research firm Colliers Philippines believes that the Cebu office market is well positioned for recovery.
By the end of the third quarter of 2021, Colliers said Cebu’s office space recorded positive net take-up for three consecutive quarters, reflecting increased business confidence among occupiers.
While vacancy remains high at 22 percent and is still expected to increase given the forecasted upcoming supply, Colliers is optimistic that the abundance of new office buildings and Philippine Economic Zone Authority-proclaimed spaces in Cebu will continue to attract information technology-business process management (BPM) locators and other occupiers to the province.
“As the largest outsourcing hub outside Metro Manila, Cebu remains a preferred business destination due to its competitiveness in terms of manpower, infrastructure, and cost of doing business,” said Colliers in its recent market update.
“With over 41,000 square meters in flexible workspaces built across at least 23 facilities in Cebu and the increasing demand for business continuity sites, IT-BPM locators and flexible workspace providers alike should be motivated to continue growing in this province,” the firm added.
The recent typhoon that hit some areas in the Visayas and Mindanao also resulted in high demand for fully fitted or “plug and play” spaces.
Several “plug and play” office facilities were immediately leased out in the aftermath of Typhoon Odette (Rai) as locators raced to keep their operations running.
“Colliers has observed that several IT-BPM players have signed leases in such facilities in the short term or until electricity providers reenergize their employees’ respective areas,” the firm noted.
Colliers encouraged flexible workspace providers to gauge interest for fitted spaces in the market and create more plug-and-play facilities that capture the evolving needs of occupiers.