With 2022 Cebu City office demand as of November more than 300% the full-year 2021 figure, office developers in the southern capital of the Philippines look forward to heightened activity in the coming year.
Premiere developments like the 21-story Johndorf Tower at the Cebu Business Park’s main thoroughfare Mindanao Avenue are once again enjoying pre-commitments even months before its completion in Q2 2023 indicative of better times ahead. The PEZA accredited, LEED-gold certified tower is represented by exclusive leasing agent Leechiu Property Consultants (LPC).
According to Bobby Apas, LPC Commercial Leasing senior manager, Cebu’s economy has bounced back quickly and is on the road to recovery. Full year 2021 office demand in the metropolis registered at 16,683 sq m. As of November, the figure has risen to 68,451 sq m. with more transactions expected to be completed before the end of the year.
Current demand is led by the IT-BPM sector at 44,000 sq m. or 65%; followed by serviced offices, 18%; and others, 17%.
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 BPO players like JP Morgan, Accenture, Google, Amazon and the like.
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 Corporation (JVC) , developer of Johndorf Tower, pursued expansion into the office segment, recalled Apas. 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 pandemic, and local lockdowns, Johndorf Ventures was driven to continue and complete its 21-story tower confident that the VisMin 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 sq m. It has 5 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 confirmed.