CEBU’S office market tightened in the second quarter of 2025 as vacancy dropped to 16.8 percent down from 21.3 percent in the previous quarter, fueled by sustained demand from outsourcing firms, according to Colliers.

Transactions in the first half of the year reached 88,000 square meters, accounting for more than half of total office deals outside Metro Manila.

The figure already exceeded Cebu’s full-year take-up in 2024, which stood at 70,600 square meters. In the second quarter alone, Cebu recorded 67,600 square meters of deals, up 145 percent year on year.

Outsourcing sector growth

The outsourcing sector drove 66 percent of office demand in the first half, while traditional firms accounted for 34 percent. Expansion made up 93 percent of all transactions. Cebu IT Park led leasing activity with 57 percent of total deals, followed by the CBP Fringe (20 percent) and Cebu Business Park (nine percent). Notable locators included Asurion, Concentrix, Wipro, Avant Offices, TDCX, Smartsourcing and EXL Service.

Colliers projects 112,800 square meters of new office supply in Cebu this year, with more than half coming from Cebu IT Park and the North Reclamation Area. Key developments slated for completion include BDO Corporate Center Cebu, Grand Tower, Mahi Center and Patria de Cebu.

From 2025 to 2027, average annual completions are forecast at 81,700 square meters, up from 51,300 square meters between 2022 and 2024.

Net take-up in the first half of 2025 surged 362 percent year on year to 84,200 square meters supported by major outsourcing deals in the second quarter. Colliers expects full-year net take-up to hit 100,000 square meters.

“Cebu is at a turning point. For the first time since the pandemic, office vacancy has eased below the 20 percent mark driven by large transactions and key BPO players expanding their footprint in the region, said Kevin Jara, director and head of Office Services–Tenant Representation at Colliers. “This renewed momentum reinforces Cebu as the leading market outside of the nation’s capital and signals a broader shift towards growth in regional hubs.” / KOC