Cebu developers pivot office strategy to tap GCC demand

CEBU, Philippines — Cebu’s property developers are recalibrating office strategies to capture a new wave of demand from global capability centers (GCCs), as multinational firms increasingly bypass Metro Manila in favor of regional hubs with stronger fundamentals.

At the forefront of this shift is One Mandani Bay, the flagship office development within Mandani Bay township, where a series of recent lease agreements highlight a strategic tilt toward multinational corporations and institutional occupiers, moving away from the traditional dominance of outsourcing tenants.

Three established firms—DSV Air & Sea Inc., Vicsal Investment Inc., and Yamaha Motor Philippines Inc.—have committed to space in the 30-storey tower, showcasing Cebu’s growing appeal to globally integrated enterprises seeking regional headquarters and back-office hubs.

Developers are increasingly designing office supply around these occupiers. At One Mandani Bay, the operator has opted to exclude business process outsourcing (BPO) tenants in its initial phase, carving out a niche for corporate users that demand more formal environments, predictable operating hours, and premium-grade facilities.

“We wanted to serve a segment that is purely corporate,” said project director Gilbert Ang, noting that the concept dates back to pre-pandemic planning when Cebu’s office stock was heavily skewed toward outsourcing firms.

According to Colliers Philippines, Cebu’s office transactions surged 71 percent year-on-year to 121,000 square meters in 2025, with net take-up rebounding sharply to 100,000 square meters from just 4,000 square meters the previous year.

GCCs accounted for 21 percent of total demand, signaling a structural shift in occupier mix.

A deliberate shift beyond BPOs

Unlike traditional IT park developments, where outsourcing firms dominate and operate around the clock, newer projects are being configured to appeal to multinational corporations establishing regional hubs—often referred to as GCCs.

These occupiers typically prioritize: proximity to transport infrastructure and international gateways; integrated live-work-play environments for talent retention; sustainability credentials aligned with global ESG mandates; and secure, formal office environments with controlled access and operations.

According to Ang, at Mandani Bay, this has translated into design choices such as expansive lobbies, executive drop-off areas, large floor plates of up to 2,000 square meters, and sustainability features that helped the building secure a five-star BERDE rating—the first in the Visayas and Mindanao.

Cebu’s rising GCC proposition

The pivot reflects Cebu’s strengthening position as a secondary business hub with advantages that extend beyond cost arbitrage.

Industry executives point to—  geographic accessibility across the Visayas and Mindanao; proximity to Mactan-Cebu International Airport improving urban infrastructure; and a growing pool of skilled, English-speaking talent.

More importantly, Cebu is increasingly viewed as a de-risked alternative to Metro Manila, offering operational continuity and lower congestion.

“Multinationals [companies] are no longer just looking for outsourcing sites—they’re building capability centers,” said Collier’s Joey Roi Bondoc in  presenting market data, citing expansions from firms such as Asurion, Wells Fargo and EY.

Flexible pipeline amid uncertain demand

Developers, however, are keeping future supply flexible. While Mandani Bay’s masterplan includes three office towers, executives say future phases could still accommodate outsourcing firms or hybrid tenants, depending on how demand evolves—particularly as artificial intelligence reshapes the BPO industry.

“We have to see what the market will be,” Ang said, pointing to rapid technological shifts that could redefine workspace requirements over the next five years.

For now, Cebu’s bet on GCC-driven demand appears to be gaining traction. As global firms decentralize operations and seek resilient, cost-efficient hubs, developers are moving early to align product offerings—reshaping the island’s office landscape in the process.