The office market in Metro Cebu surged in the first quarter, rebounding with a 150 percent quarter-on-quarter increase in transaction volumes after a sluggish fourth quarter of 2024, which was weighed down by election-related uncertainty, according to property consultancy firm Colliers.
Colliers identified the information technology and business process management (IT-BPM) sector as the primary driver of demand, followed closely by traditional corporate firms. The majority of transactions were attributed to expansions and new setups, signaling renewed business activity.
“Recording a sharp rebound in transaction volume in the first quarter of 2025, the Metro Cebu office market is off to a good start,” Colliers stated in its report.
The firm noted that Cebu City accounted for 36 percent of nationwide office demand, translating to approximately 20,000 square meters of leased space—highlighting its growing prominence as a key business hub outside Metro Manila.
It said 51 percent of new leases were from the IT-BPM, closely followed by traditional corporate occupiers. Expansions and new setups made up 82 percent of transactions, reflecting increasing business confidence despite global headwinds such as US tariffs and geopolitical risks.
Vacancy in Metro Cebu rose to 21.2 percent in the first quarter due to new supply, including Filinvest Cyberzone Towers 3 and 4. With an additional 110,000 square meters of new space expected this year, vacancy levels are projected to hover around 20 percent.
Pre-leasing activity has gained significant momentum, with major outsourcing firms securing space in buildings still under construction. This trend has helped push net take-up to 13,000 square meters, reversing the negative absorption seen in the previous quarter.
Filinvest Cyberzone’s new towers have emerged as key sites for early commitments.
Enhancing Cebu’s attractiveness is the rise of seat leasing—a cost-efficient solution for firms looking to avoid high fit-out expenses. With 70 percent of available office stock still in bare-shell condition, flexible workspace solutions are becoming increasingly vital for quick, capital-light market entry.
