Cebu Emerges as Premier Office Hub Beyond Metro Manila with Record Growth in 2025
In a remarkable display of economic resilience, Cebu has solidified its position as the largest office market outside the National Capital Region, accounting for nearly half of all office transactions in regional areas during 2025. According to a report from Colliers Philippines, this surge underscores the province's growing appeal to multinational corporations and outsourcing firms seeking strategic locations beyond Metro Manila.
Staggering Growth in Office Space Demand
Joey Bondoc, research director at Colliers Philippines, revealed that full-year office space transactions in Cebu reached an impressive 121,000 square meters in 2025, marking a substantial 71 percent increase compared to the previous year. Net office take-up also saw a dramatic turnaround, climbing to 100,000 square meters from a mere 4,000 square meters in 2024. Bondoc emphasized that this level of demand is historically high for Cebu, even surpassing pre-pandemic and pre-Pogo industry benchmarks.
The composition of office transactions highlights a diverse tenant mix:
- Global capability centers (GCCs) comprised 21 percent of total deals.
- Third-party outsourcing firms (3POs) dominated with 56 percent.
- Traditional firms accounted for the remaining 23 percent.
Notable expansions in Cebu included GCCs such as Asurion, Wells Fargo, and EY, alongside major players like Accenture, Concentrix, and Wipro from the traditional and outsourcing sectors. A GCC, defined as an in-house subsidiary set up by multinationals in lower-cost countries, manages specialized functions like IT, R&D, and finance, driving demand for secure, high-grade office spaces.
Driving Factors Behind Cebu's Office Market Resilience
Bondoc pointed to data privacy concerns and operational control as key motivators for firms expanding into dedicated offices, reinforcing Cebu's role as a hub for higher-value technical functions. "If you want to secure data, you have to be in your own office," he noted, adding that these companies typically occupy large, premium spaces. Despite the widespread adoption of hybrid work models, demand remains robust, with companies redesigning offices to include collaborative areas and amenities to attract employees back onsite.
New office developments are increasingly concentrated in emerging and fringe business districts, such as Mandaue City, as developers respond to sustained demand from outsourcing and shared services locators. Cebu's overall office vacancy rate has improved to approximately 17 percent in 2025, down from 20.5 percent in 2024, with key districts like Cebu Business Park and Cebu IT Park recording even lower vacancy levels.
Future Supply and Strategic Expansions
Colliers projects an average annual new office supply of 60,000 square meters from 2026 to 2028, a more measured pipeline compared to the 96,000 square meters delivered yearly from 2017 to 2019. This suggests a balanced approach to meeting sustained demand without oversupply.
In line with this growth, SM Prime Holdings Inc. is accelerating its expansion in Cebu. Through its office leasing arm, SM Offices, the company plans to add over 60,000 square meters of leasable office space in Cebu City by the fourth quarter of 2026 via the SM City Cebu Towers. Located along A. Soriano Ave. in the North Reclamation Area, this mixed-use development will integrate office spaces with retail facilities and a campus of National University Cebu, offering access to key transportation hubs and government centers.
Alexis Ortiga, vice president and head of SM Offices, highlighted Cebu's strengths: "Cebu is a major economic hub because of its strong infrastructure, exceptional talent pool and complete business ecosystem." The project targets traditional corporations and BPO firms seeking alternatives to the higher costs and traffic congestion in Metro Manila, further positioning Cebu as the Philippines' fastest-growing regional office market outside the capital.
