CEBU is poised to become the primary global capability center (GCC) hub outside Metro Manila, as multinational firms expand operations in the province and office transactions surge, according to Colliers Philippines.
Joey Bondoc, research director at Colliers Philippines, said full-year office space transactions in Cebu reached 121,000 square meters (sqm) in 2025, up 71 percent year on year. Net office take-up climbed to 100,000 sqm, a sharp turnaround from just 4,000 sqm recorded in 2024.
Cebu accounted for nearly half of total office transactions in areas outside the National Capital Region last year, cementing its position as the largest office market beyond Metro Manila.
“The 120,000 sqm level indicates strong demand. Even before the Pogos and before the Covid-19 pandemic, 100,000 sqm was already high for a market like Cebu,” Bondoc said.
GCCs comprised 21 percent of total office transactions in 2025, while third-party outsourcing firms (3POs) covered 56 percent of deals. The remaining 23 percent was cornered by traditional firms.
Among the GCCs that expanded in Cebu were Asurion, Wells Fargo and EY. Major traditional and 3PO firms that took up space during the year included Accenture, Concentrix, Virtual Staffing Solutions, Avant Offices, Wipro and Optum.
A GCC is an in-house, wholly-owned subsidiary or offshore unit established by a multinational corporation in a foreign, often lower-cost, country like India and the Philippines to manage specialized functions like information technology, research and development, finance, or customer service.
Bondoc said that data privacy and operational control are prompting multinational firms to expand in dedicated office spaces, reinforcing Cebu’s role as a hub for higher-value and more technical functions.
“If you want to secure data, you have to be in your own office,” he said, adding that these firms typically occupy large, high-grade spaces.
Cebu office vacancy
Despite the continued adoption of hybrid work, demand remains resilient. Companies are also redesigning offices to attract employees back onsite, incorporating collaborative areas, lounges and amenities.
Bondoc said new office developments are largely rising in emerging and fringe business districts, including Mandaue City and other peripheral growth areas, as developers respond to sustained demand from outsourcing and shared services locators.
Cebu’s office vacancy rate is estimated at about 17 percent, improving from roughly 20.5 percent in 2024, though key districts such as Cebu Business Park (CBP), CBP Fringe, Cebu IT Park (CITP) and CITP Fringe are recording significantly lower vacancy levels.
Colliers projects an average annual new office supply of 60,000 sqm from 2026 to 2028, below the 96,000 sqm delivered yearly from 2017 to 2019, suggesting a more measured pipeline amid sustained demand.
New supply
Against this backdrop, SM Prime Holdings Inc. is ramping up its Cebu expansion.
In a disclosure dated Thursday, Feb. 19, 2026, SM Prime said its office leasing arm, SM Offices, plans to add more than 60,000 sqm of leasable office space in Cebu City by the fourth quarter of 2026 through the SM City Cebu Towers along A. Soriano Ave. in the North Reclamation Area.
“Cebu is a major economic hub because of its strong infrastructure, exceptional talent pool and complete business ecosystem,” said Alexis Ortiga, vice president and head of SM Offices.
The SM City Cebu Towers will rise within the redeveloped North Wing complex, integrating office spaces with retail facilities and a campus of National University Cebu. The mixed-use design provides access to the South Road Properties, Mactan-Cebu International Airport, the port area and key government centers.
SM Prime said the project is targeting traditional corporations and BPO firms seeking alternatives to higher costs and traffic congestion in Metro Manila, positioning Cebu as the country’s fastest-growing regional office market outside the capital. / KOC