ESL drives up office demand

CEBU, Philippines — ESL (English as a Second Language) companies are potentially emerging as a new key driver for office demand in Cebu, Colliers International said yesterday.

In a report released Monday, the global realtor said  absorption from English tutorial centers is gaining ground, although outsourcing and offshore gaming companies continue to account for the bulk of Cebu's office space demand.

Colliers said developers must provide flexible office cuts to English language centers.

Among the ESL centers already in the city business districts -- Cebu IT Park and Cebu Business Park -- are QQ English, Newtype International Language School, TOMAS English Training Center, Access E-Talk Plus Inc., Winkey Online English Academy, Nexseed and Seiha English Network Philippines.

Colliers sees continued expansion of existing ESL centers as well as the entry of new players.

"We encourage developers to assess the office space requirements of these firms. Most ESLs initially require smaller office cuts then occupy larger space as they expand," the Canadian property consultant said in the report.

Aside from outsourcing firms, several traditional companies continue to open shop in Cebu City and Mandaue, requiring smaller office cuts.

Colliers believes that developers should be more flexible and mindful of the expansion of non-outsourcing businesses such as banks, insurance firms, manpower agencies and law firms.

Mandaue remains an attractive location for non-outsourcing firms such as banks and insurance companies due to cheaper lease rates and flexibility in office floor cuts, the property consultancy agency said.

Colliers encourages these firms to look continuously for available space in the thriving business district as rates are cheaper than in more established business hubs in Cebu City such as the Cebu IT Park and Cebu Business Park.

Moving forward, outsourcing companies such as call centers as well as offshore gaming firms are seen continually driving office space demand in the Cebu.

Mactan will probably continue to be a hub for offshore gaming operations and the expansion of these firms should spill over to Mandaue, Colliers. At present, the latter attracts several non-outsourcing businesses such as banks and insurance firms.