Cebu poised for green building boom in 2025

CEBU, Philippines — Cebu is projected to attract more green building developers in 2025, as large parent companies and Business Process Outsourcing (BPO) firms require their subsidiaries to operate in healthy and sustainable office spaces.

Colliers Philippines Director for Research Joey Roi Bondoc said that outside Metro Manila, Cebu is emerging as a hub for green, healthy, and sustainable office spaces, especially as it houses the largest office stock outside the capital region.

“We expect more landlords with substantial office footprints in Cebu to recognize this demand and develop additional health-focused, green, and sustainable office towers beyond 2025,” he said.

The provision of green, healthy, and sustainable office spaces is becoming increasingly popular, with landlords capitalizing on the demand from multinational companies and large Filipino firms prioritizing sustainability.

Colliers believes that occupying healthy and sustainable office spaces will play a pivotal role in driving demand in the office sector starting in 2025.

In addition to providing safe and healthy office environments, landlords should also assist tenants in attracting more employees to work on-site by emphasizing their buildings' amenities and other value-added features.

According to Bondoc, developers should explore ways to differentiate themselves in the market as the shift toward green and sustainable offices gains momentum.

“In our opinion, the incorporation of green and sustainable features will be crucial for occupier retention and attraction strategies post-COVID,” Bondoc said.

From 2025 to 2027, approximately 61 percent of the new supply will consist of Leadership in Energy and Environmental Design (LEED) or WELL-certified buildings. Most of these buildings will feature lower density ratios, curtain wall systems with thermal insulation, touchless access in elevators, vertical gardens, UV disinfection lifts, and filtered air circulation systems to ensure a healthy and efficient workplace for traditional and outsourcing occupiers.

As employers begin welcoming workers back to the office, Colliers recommends that landlords provide spaces that prioritize employee health and well-being. This may involve offering spaces in buildings certified under LEED, Building for Ecologically Responsive Design Excellence (BERDE), or WELL standards.

From 2025 to 2027, Colliers projects that approximately 61 percent of the new supply in Metro Manila alone will have green building certifications.

Prioritize Sustainable Building Features

A Colliers Philippines report entitled “Forging Smarter and Greener Buildings” highlights that property developers are increasingly taking steps to address climate change by “embracing advanced technologies.”

To further promote sustainability, developers are leveraging globally recognized green building certifications to reduce their properties’ environmental impact and meet occupiers’ Environmental, Social, and Governance (ESG) standards.

Colliers believes that the future of office buildings lies in developing spaces that are safer, healthier, and less harmful to the environment.

Colliers has also observed that some discerning occupiers prefer or require ESG-certified office spaces. Landlords must proactively capture this demand.

In the first nine months of 2024, approximately 45 percent of transactions occurred in green-certified buildings. — (FREEMAN)