NEW CEBU LEED-CERTIFIED TOWER POISED TO BENEFIT FROM RECOVERY
With office demand in Cebu City now more than 300 percent of the full-year 2021 figure as of November, developers in the southern capital of the Philippines are looking forward to heightened activity in the coming year.
Premier developments like the 21-story Johndorf Tower at the Cebu Business Park’s main thoroughfare Mindanao Avenue are once again enjoying pre-commitments prior to its completion in the second quarter of 2023, indicating better times ahead. The Philippine Economic Zone Authority-accredited, LEED Gold certified tower is represented by exclusive leasing agent Leechiu Property Consultants (LPC).
According to LPC Commercial Leasing senior manager Bobby Apas, Cebu’s economy has bounced back quickly and is on the road to recovery. Full year 2021 office demand in the metropolis stood at 16,683 sqm. As of November, the figure has risen to 68,451 sqm with more transactions expected to be completed before the end of the year.
Current demand is led by the IT and business process management (IT-BPM) sector at 44,000 sqm (65 percent), followed by serviced offices (18 percent).
Due to its large labor force and dynamic economy, Cebu has been a top choice for IT-BPM firms seeking alternative locations to Metro Manila for almost 15 years now, said Apas. The metropolis already hosts notable outsourcing players like JP Morgan, Accenture, Google, Amazon, among others.
As global markets head towards recession, firms in the West are likely to outsource more jobs to countries like the Philippines and India as they did in the late 90s during the global financial crisis, according to LPC studies.
Thus, firms like Johndorf Ventures Corp. (JVC), developer of Johndorf Tower, pursued expansion into the office segment. JVC has championed for over 30 years now affordable living in major cities in the Visayas and Mindanao and has P3 billion worth of projects in the pipeline.
Even at the height of the COVID-19 pandemic and local lockdowns, Johndorf Ventures was driven to continue and complete its 21-story tower, confident that the Vis-Min economy would soon recover. Upon completion in a few months, Johndorf Tower will be the newest building offering highly sustainable LEED-certified amenities and features at the Cebu Business Park, a top choice for IT-BPM firms.
Easily accessible to Ayala Center Cebu and its retail and dining outlets and transportation hubs, the building has a typical floor plate of 1,427 sqm. It has five passenger elevators, high ceilings and a modern air-conditioning system.
“We are confident Johndorf Tower will be among the most attractive IT-BPM locations in Cebu City in 2023 and that its developer will reap the benefits of great business timing,” Apas said.