CEBU, PHILIPPINES – According to Colliers, Cebu’s office market is bouncing back due to the expanding operations of outsourcing firms. From 21.3% in Q1 2025, the vacancy rate fell to 16.8% in Q2 2025.
Of the transactions in the first half of the year, which reached 88,000 sq. m., 66% of them are due to office demand from the outsourcing sector. Leading the leasing activity are as follows:
- Cebu IT Park with 57% of total deals
- CBP Fringe with 20%
- Cebu Business Park with 9%
Major BPO players such as Concentrix, Wipro, TDCX, Smartsourcing, Asurion, and EXL Service secured new space as well. Such action signals strong confidence in Cebu as an outsourcing hub to current and potential investors.
Why This Matters
Kevin Jara, director and head of office Services – Tenant Representation at Colliers, remarked that “Cebu is at a turning point” and that “office vacancy has eased below the 20% mark, driven by large transactions and key BPO players expanding their footprint in the region.”
This is a milestone that underscores Cebu’s status as the leading office market outside Metro Manila.
For BPOs, Cebu offers talent and infrastructure to support continued growth. For the property sector, this momentum signals that regional hubs are becoming the next frontier for outsourcing expansion in the Philippines.
