The landscape of office work in Metro Cebu is undergoing a significant transformation, with flexible workspaces expanding at a rapid pace. According to a recent report from Colliers Philippines, this growth is primarily fueled by strong demand within Cebu IT Park, as more companies seek agile and cost-efficient alternatives to traditional offices, especially those located outside Metro Manila.
Cebu IT Park Dominates Supply and Performance
Data from the third quarter of 2025 reveals the scale of this expansion. The total supply of flexible workspace in Cebu has reached approximately 14,000 seats, which translates to about 67,500 square meters of office stock. A commanding 75 percent of this inventory, or 10,500 seats, is concentrated in Cebu IT Park. This key district is not only the supply leader but also a performance standout, posting a vacancy rate of just 14 percent, which is better than the overall market average for flexible offices.
Ohara Rosales, Manager for Office Services and Tenant Representation at Colliers Cebu, explained the trend. "Flexible workspaces in Cebu continue to gain momentum as occupiers look for managed, scalable solutions that allow them to respond quickly to business needs," Rosales stated. "Cebu IT Park, in particular, stands out due to its established ecosystem, infrastructure and access to talent."
Sustained Demand and Tightening Supply
The market activity supports this analysis. In the first nine months of 2025 alone, Cebu IT Park recorded 96,000 square meters of office transactions, cementing its status as Metro Cebu's most active business district. The vacancy rate in the park has seen a dramatic improvement, halving from 28 percent in Q3 2022 to 14 percent in Q3 2025. This decline is largely attributed to expansions from major IT-Business Process Management (IT-BPM) firms such as Concentrix, Optum, EY, and Wipro.
The competitive landscape features established operators like KMC Solutions, Avant Offices, Regus, and BPO Seats maintaining a strong presence. They are now joined by newer entrants including The Company Cebu, Enspace, Econode, and Teleforce Spaces. Colliers anticipates more operators will enter or expand in Cebu in the coming months, driven by ongoing demand from both IT-BPM and corporate occupiers.
Looking ahead, the supply pipeline is constrained. With no new office supply expected in Cebu IT Park over the next three years, availability is predicted to tighten further, potentially pushing rental rates upward.
Future-Proofing Developments and Business Continuity
Colliers advises developers to prepare for future demand by considering the activation of idle projects. The firm recommends prioritizing the development of green, BPO-grade offices within integrated, master-planned communities. Furthermore, the importance of disaster-resilient design and sustainability features was highlighted, with Cebu IT Park's resilience during recent natural calamities cited as a key advantage that kept business operations largely unaffected.
Rosales added another strategic role for these flexible spaces. They can serve as contingency locations within business continuity plans, helping companies ensure uninterrupted operations during potential disruptions. This functionality adds another layer of value for occupiers prioritizing operational resilience.
In summary, Metro Cebu's office market is being reshaped by the flexible workspace revolution, with Cebu IT Park at its epicenter. Driven by a potent mix of established infrastructure, talent access, and demand from scalable industries like IT-BPM, the district is poised for continued growth and lower vacancies in the years to come.
