Why You Should Set Up Your Office in Cebu City
Cebu has established itself as the main economic stronghold in the Visayas region. With support from the local government, the province has emerged as one of the key cities in the region for private businesses. Complementing its bustling tourism industry, continuous infrastructure development, and a fresh pool of labor force, Cebu is now an ideal option for your office in Visayas.
The province’s capital, Cebu City, is considered as the Visayas commercial capital as many multinational and local companies prefer to expand their operations and headquarters in Cebu City than any other city in the region. It is also one of the top destinations for IT companies, manufacturers, and BPOs. Additionally, it is recognized as a leading tech hub and a top destination for BPO firms.
Office Spaces in Cebu City
Cebu has a huge profile of office buildings ready to accommodate businesses that want to expand their operations in the region. Newer office spaces in Cebu are specially designed and built to accommodate the needs of their occupiers, specifically the IT-BPO companies. Commercial buildings for lease are equipped with state-of-the-art technology and top-grade amenities to provide for their operational requirements.
In 2020, the IT-BPO industry is expected to sustain its exponential growth as captive companies expand operations beyond Metro Manila and throughout the country’s ‘digital cities’. These cities are technologically prepared to accommodate IT-BPO locators outside city centers.
Government Support on Setting Up a Business
Cities and municipalities within the province prioritize the strengthening of measures and ordinances to support the growing local business sector. The local administration also adopts necessary changes and adjustments to promote the province as the next key location in the Visayas region.
Government officials take pride in sustaining the standards in business policy-making and investment promotions in Cebu. Similar initiatives will encourage more business locators to invest and occupy more office spaces and commercial buildings in other areas within the province.
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One of the key reasons why businesses thrive in Cebu City today is its young and lively workforce. The city is home to some of the best universities in the country, including the University of the Philippines Cebu and University of San Carlos. Businesses that expand in Cebu City and neighboring locations have exclusive access to this rising workforce population.
Additionally, Cebu is well-known for its English-speaking population which can be an additional benefit for multinational companies and BPOs to operate and expand to the province.
More Premium Office Spaces in Cebu City
Metro Cebu’s office market has finished strong in 2019. Amid the additional supply of office spaces in Cebu from completed building construction, KMC data notes that the net absorption was still better-than-expected as it overshadowed a new supply of around 52,000 sq m, closing the overall vacancy rate at 7.0% in the last quarter of 2019.
Vacancies in the notable Cebu IT Park has also contributed to this rate as it jumped to 9.0% and is forecasted to further increase to the mid-teens this year. Rental rates in Cebu’s central business districts have also managed to post a 2.8% YoY increase to PHP 586.7 per sq m/month despite the increase in the vacancy rate. KMC Research expects office spaces in Cebu to lease rates up to PHP 600.9 per sq m/month.
More Businesses Expanding Operations in Cebu City
Multinational companies under the healthcare services, legal services, professional travel management, financial services, IT services, software development, and animation industries are expanding their operations outside of the country’s capital region and are looking to locate in offices outside Metro Manila, eyeing Cebu City, Iloilo City, and Clark for their expansion plans.
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