Cebu's office market saw demand plunge 68.2% year on year to 20,200 square meters in the first half of 2026, according to a report by BusinessWorld citing CBRE Philippines. The sharp decline reflects slowing business process outsourcing (BPO) leasing activity, rising vacancies, and a wave of new office completions in the provincial hub.
The reversal marks a stark contrast from earlier growth periods, as the provincial office market grapples with an oversupply of space. CBRE Philippines noted that the slowdown in BPO leasing has been a key factor, with many occupiers deferring expansion decisions amid global economic uncertainty.
The fresh wave of office completions has further pressured occupancy rates, pushing vacancies upward across the metro. Analysts expect the market to remain tenant-favorable in the near term, with landlords offering flexible terms to attract new leases.