CEBU’S office property sector is regaining momentum, with vacancy dropping to 16.8 percent by end-second quarter of 2025 from 21.3 percent in the previous quarter, as outsourcing firms continue to fuel demand.
Data from Colliers showed Cebu captured 88,000 square meters (sq.m.) of office transactions in the first half of 2025, accounting for more than half of the total deals recorded outside Metro Manila. The figure already exceeded the city’s full-year take-up in 2024 of 70,600 sq m.
Second-quarter transactions alone reached 67,600 sq.m, up 145 percent year-on-year, making Cebu the country’s most active office market outside the capital. Net absorption also surged to 84,200 sq.m. in the first half, more than four times higher than a year ago, boosted by large outsourcing deals.
The Information Technology-Business Process Management sector continued to dominate demand, taking up 66 percent of office space in the first six months, while traditional firms accounted for 34%. Most tenants were in expansion mode, comprising 93 percent of total deals.
By location, Cebu IT Park led activity with 57 percent of transactions, followed by CBP fringe (20 percent) and Cebu Business Park (nine percent). Among the notable locators were Asurion, Concentrix, Wipro, Avant Offices, TDCX, Smartsourcing, and EXL Service, which leased spaces in IT Park, CBP, CBP Fringe, and Mactan.
Developers are set to deliver 112,800 sq.m. of new supply this year, with more than half located in Cebu IT Park and North Reclamation. Projects in the pipeline include BDO Corporate Center Cebu, Grand Tower, MAHI Center, and Patria de Cebu.
From 2025 to 2027, Cebu is expected to add an average of 81,700 sq.m. annually, higher than the 51,300 sq.m. average completions from 2022 to 2024.
“Cebu is at a turning point,” said Kevin Jara, director and head of office services – tenant representation at Colliers. He noted that vacancy fell below the 20 percent threshold for the first time since the pandemic, driven by large outsourcing transactions.
“This renewed momentum reinforces Cebu’s position as the top office market outside Metro Manila and signals a broader shift toward growth in regional hubs,” he added.
Colliers projects Cebu’s net take-up to reach 100,000 sq.m. by end-2025. / KOC