From alternative to essential: Cebu’s rise as an investment magnet
Few markets move from promise to inevitability. But in 2025, Cebu crossed that line.
Long seen as a secondary hub to Metro Manila, Cebu has matured into one of the Philippines’ prime destinations for global investment.
A rebounding office sector, expanding infrastructure and a deep talent pool make the case clear.
Office vacancy rates in Cebu dropped to 16.8 percent by mid-2025—down sharply from 21.3 percent in 2024—the lowest since the pandemic, signaling renewed occupier confidence.
At the same time, the Philippine economy is projected to grow around 6 percent this year, fueled by the IT-BPM industry, which expects to surpass 1.9 million jobs and $40 billion in export revenues.
Cebu is positioned to capture an outsized share of that expansion.
As someone who has spent over 15 years building KMC Solutions—and a decade helping companies scale in Cebu—I can say with conviction: Cebu isn’t just a good bet. It’s the smart bet for investors in 2025 and beyond.
Cebu’s real momentum
For global operators, risk mitigation is as important as opportunity. Cebu now offers both in balance. Leasing activity rebounded strongly in early 2025, with preleasing commitments rising, especially at Cebu IT Park and Cebu Business Park.
This isn’t speculative demand. It’s driven by IT-BPM expansions, professional services and multinational firms diversifying footprints outside of Metro Manila.
What’s remarkable is how Cebu has become one of the Philippines’ most active markets.
At KMC, our top three locations tell the story: Makati, BGC and Cebu. This positioning reflects something profound— Cebu has evolved from a cost-play arbitrage destination into a must-have location for serious scaling.
Infrastructure that reduces risk
Connectivity is often the greatest barrier to scaling outside capital cities. Cebu is hopefully removing that barrier.
This September, the Cebu Bus Rapid Transit (BRT) system begins partial operations, the first step in a mass transit backbone.
Once completed, it will link business districts to residential areas, reducing commute times and improving workforce access.
The Metro Cebu Expressway is also progressing, designed to decongest roads and create faster north–south logistics.
With its international airport and seaport, Cebu is no longer reliant on Manila’s networks. For investors, this means efficient operations and stronger workforce reliability.
Talent depth and quality excellence
Infrastructure may unlock access, but talent sustains investment. Cebu delivers both scale and exceptional quality.
The city has developed a mature ecosystem capable of supporting complex global services across highly technical domains: cybersecurity, health care, accounting and advanced IT services.
With over 50 universities and colleges, Cebu continues to produce a steady pipeline of English-speaking, tech-savvy graduates.
But more importantly, businesses prefer Cebu for the ease of doing business—seamless processes, registration and coordination with local government that simply works.
Our clientele seeks infrastructure that mirrors the standards of their operations in developed markets like the United States, Australia or Singapore.
The evolution is striking.
Companies are no longer choosing Cebu purely for cost advantages—they’re drawn to the caliber of talent and demanding premium office environments.
Recent developments showcase this shift, with LEED Gold certified buildings and institutional-grade specs becoming the norm, reflecting sophisticated occupier expectations.
At KMC, we witnessed Cebu’s rise because we bet on it early.
KMC’s decade-long Cebu journey
A decade ago, KMC made a strategic decision to establish operations in Cebu—a decision that has exceeded our most optimistic projections. The city has consistently attracted exceptional clients and talent while fostering innovation and adaptability.
Our recent 10-year milestone isn’t just a celebration of past success; it’s a testament to our confidence in Cebu’s future.
Our Cebu operations span multiple premium locations: Skyrise 4 at Cebu IT Park, HM Tower and Lexmark Plaza.
Together, these facilities represent 17 percent of our entire 120,000+ square meter portfolio—a significant allocation that reflects Cebu’s key importance.
These spaces house nearly 4,000 employees, either directly employed by KMC or serving our clients.
But we don’t stop at office space.
Through our Employer of Record (EOR) services, we remove the biggest barriers companies face when entering a new market: incorporation delays, compliance risk and administrative overhead.
With KMC as the legal employer, businesses can build integrated Filipino teams without setting up a local entity, while we manage recruitment, onboarding, payroll, taxes, benefits and labor law compliance on their behalf.
The advantage is speed, as well as certainty. What typically takes months of registration and legal work can be reduced to weeks. It also gives companies flexibility—they can start with a lean team, test Cebu’s talent pool and scale rapidly once the model proves itself.
All of this happens under full compliance with Philippine labor laws, ensuring both business continuity and employee confidence.
In short, our EOR model enables companies to focus entirely on innovation and growth, while KMC handles the complexities of being the employer of record.
This is how we’ve helped global firms scale from a handful of Cebu-based employees to hundreds, without the friction or risk of doing it alone.
Positioned for global growth
The Philippines occupies a unique economic position globally. When international markets expand, the Philippines benefits from increased demand for services.
Conversely, during global economic contractions, companies accelerate cost optimization strategies, often moving operations to the Philippines—creating a counter-cyclical growth dynamic that few markets can claim.
Cebu amplifies this advantage. It’s a prime location with a quality source of talent that can’t be found everywhere.
From our initial expansion strategy focused on regional development and creating opportunities beyond Metro Manila, Cebu has become far more than we anticipated.
A final word
The transformation continues as Cebu develops into a comprehensive innovative ecosystem.
Our soon-to-launch office at Skyrise 3, in the Cebu IT Park, is part of that momentum—expanding our footprint to support organizations that see Cebu as the hub for next-generation operations.
A market with world-class talent and infrastructure, paired with a partner that clears every barrier to entry.
For investors ready to expand, Cebu offers growth backed not by optimism but by fundamentals—and KMC ensures that growth is both fast and frictionless.
(The author is co-founder and CEO of Workspace Solutions, KMC)
