BPOs to fuel Cebu office market in 2024

CEBU, PHILIPPINES — Cebu’s office space market is poised for strong and sustained growth in 2024, driven by expanding business process outsourcing (BPO) companies.
According to Colliers Philippines, Cebu will remain an attractive hub for BPOs seeking new sites to accommodate business growth. The availability of quality office spaces at favorable lease rates makes this an ideal time for BPOs to invest in expansive workspaces to house larger workforces.
Metro Cebu recorded the Philippines’ highest provincial office take-up in 2022, cementing its status as the preferred location for outsourcing firms looking to expand outside Metro Manila. Major BPOs like Wipro, Concentrix, and Avant Offices also recently acquired spaces in Cebu.
The trend is expected to persist in 2024 and beyond. Colliers projects Cebu will take the lion’s share to meet robust demand.
Besides BPOs, shared services and multinational companies capitalize on Cebu’s strong labor pool and infrastructure to advance their business continuity plans.
“In our view, now is an opportune time to haggle for more attractive lease rates given the substantial supply in Metro Cebu. For more discerning locators such as BPOs and multinational firms, this is a good time to invest in a high-quality and expansive office space,” said Colliers Philippines director and head for research, Joey Roi Bondoc.
“This is particularly important for locators planning to expand employee count in the near term,” he added.
Landlords are encouraged to aggressively court major occupiers through discounted lease rates and sustainable building features. Proactive landlord strategies and sustained BPO growth will tighten vacancies and lift office rents.
Cebu’s accelerating economy, improving tourism, and infrastructure boom provide tailwinds for commercial real estate. By addressing evolving tenant needs, Cebu’s office market is gearing up for enduring prosperity.