Demand for Cebu office space to remain strong

The Cebu market’s reliable workforce and the upcoming supply of PEZAproclaimed buildings will continue to drive strong demand for office spaces in the area, a property consultancy firm said.

In a statement, Colliers International said the Cebu office market continues to be a top choice for both business process outsourcing (BPO) and offshore gaming companies.

Based on the latest figures from Col- liers, overall office space take-up reached 69,000 square meters in the first half of the year, a 20 percent rise from the full-year absorption figures.

The property consultancy firm said 57 percent of the take up came from the BPO industry, while the offshore gaming market emerged as a new source of demand, accounting for a 37 percent market share.

“Amid concerns of BPO slowdown, the Cebu market has remained resilient. Cebu boasts of a highly reliable and sizeable labor pool, and this has helped keep Cebu among the top outsourcing cities despite its noted recent dip in overall ranking,” Colliers said.

“Moving forward, Colliers believes Cebu will still bank on the quality of the labor force to keep the growth momentum in the office sector,” it added.

In addition, the upcoming supply of PEZA-proclaimed buildings in the business district, is also likely to create more demand for office spaces in Cebu, Collier said.

“Colliers expects overall demand to continue especially given that the Cebu BP and IT Park are established information technology zones. Thus, it has the benefit of faster PEZA accreditation of buildings, which would foster continuous BPO growth,” the consultancy firm said.

Moreover, the number of upcoming infrastructure projects is seen to unlock the province’s potential.