The demand for office leasing in Cebu’s business districts is projected to significantly recover next year and sees sustained employment in the outsourcing industry.
“Moving forward, office leasing will be driven by companies based in the US and other major economies that continue to expand and outsource activities from hubs such as the Philippines,” Joey Bondoc, Global realtor Colliers International associate director for research said.
Bondoc said Cebu will remain attractive due to its quality workforce, improving infrastructure, and relatively cheaper cost of living compared to Metro Manila.
“To sustain growth post-pandemic, companies in major economies are expected to continue outsourcing. We saw this after the global financial crisis. Firms are likely to continue outsourcing to sustain growth beyond 2021,” the analyst said.
Maricris Joson, Colliers’ director for office services, said as the government is expected to further reopen the economy moving forward, most outsourcing companies will also start assigning their workers to the office set-up.
This will definitely drive demand for office space, she said.
Joson added that while office work among outsourcing employees is expected to make a comeback, the work-from-home and on-site hybrid is expected to stay in the industry.
Colliers cited office leasing enablers as the economy moves toward the end of 2021.
The government’s sustained and aggressive vaccination program is expected to help drive the sector beyond 2021 as more people go back to the office.
Colliers also noted the quickly improving infrastructure developments in Metro Cebu.
Some of these infrastructure projects include Cebu Monorail, Cebu Bus Rapid Transit, Metro Cebu Expressway, and the highly anticipated Cebu-Cordova Bridge, which is due for completion in 2022.