BPOs need 450K sqm office space to accommodate pandemic hires
Returning Business Process Outsourcing (BPO) firms would need around 450,000 square meters (sq.m.) of additional office space to accommodate their recruits and the projected personnel increase post-pandemic.
In a report by real estate consultancy and property investments firm Lobien Realty Group (LRG), this trend would push the local office demand to grow further in the second half of 2022.
Factors behind the return-to-office scenario in the Philippines include the observed economic recovery both here and abroad, the easing of mobility restrictions, the government’s back-to-office mandate for IT-BPM companies located in economic zones, and the preference of Filipinos to physical report to their employers.
LRG added that pandemic resiliency would also drive companies to look for extra spaces. Others, meanwhile, prefer certain provinces and townships that will allow business continuity in case of lockdowns.
At the same time, the return of Philippine Offshore Gaming Operators (POGOs) — the largest office space taker pre-pandemic —- is also being slowly observed in the market.
With all these expected demands, LRG is also expecting the long-term occupancy average of 95% to be breached over the next 12-18 months as companies accelerate their back-to-office operations.
