CEBU is poised to retain its position as the country’s most active office market outside Metro Manila in 2026, even as a looming supply drought threatens to slow transaction volumes, property consultancy Colliers Philippines said in its Outlook 2026: Office report.
Cebu accounted for the largest share of deals in areas outside the National Capital Region (NCR) in 2024 and is expected to cover more than half of provincial transactions together with Pampanga next year. But with limited new supply in Cebu IT Park (CITP) and Cebu Business Park (CBP) from 2026 to 2028, Colliers warned of a potential short-term deceleration in take-up.
Colliers said Cebu remains the second most active office submarket in the Philippines after Fort Bonifacio, buoyed by sustained demand from IT-BPM firms and multinationals seeking high-quality provincial sites.
Total transactions across provincial markets reached 210,000 square meters in 2024, with Cebu capturing the largest portion. However, the scarcity of upcoming supply in the city’s prime business districts is expected to tighten options for occupiers beginning 2026.
Nationwide, the office market is entering a period of tempered expansion. In Metro Manila, new office supply from 2026 to 2028 is projected at nearly 350,000 square meters — only a third of annual completions recorded during the 2017–2019 peak. Vacancy is forecast to ease to 19.5 percent in 2026, supported by revived demand and slower construction. Submarkets such as Makati CBD and Fort Bonifacio are set to lead rental recovery, with Makati seen entering a landlord’s market as vacancy drops to 8.2 percent.
Outside NCR, Colliers expects Cebu and Pampanga to dominate new deals. Pampanga is projected to build momentum amid expanding township developments and improving infrastructure connectivity, giving occupiers an alternative provincial hub.
Flexible workspace operators are also accelerating their push into key Visayas and Mindanao cities, including Cebu, Iloilo, Bacolod, and Davao. Colliers said companies increasingly view plug-and-play spaces as part of business continuity strategies, especially amid disruptions such as power outages and flooding. Providers like KMC Solutions and IWG are expanding aggressively to capture this demand.
Colliers said Cebu remains well positioned for medium-term growth, but developers will need to accelerate new project launches to sustain momentum. The consultancy expects occupiers to compete for limited Grade A options while landlords in emerging districts may benefit from spillover demand.
“Cebu’s strong demand fundamentals will continue to attract BPO and multinational tenants. But without new supply, rental pressure may emerge, and companies could soon face tighter selection,” Colliers said. / KOC