IT-BPM to increase demand for ‘plug-and-play’ office spaces
MANILA, PHILIPPINES — The information technology business management (IT-BPM) sector’s work-from-home (WFH) arrangements are seen to boost the demand for plug-and-play offices spaces in Metro Manila.
“Allowing liberal implementation of work-from-home schemes among IT-BPM companies will favor further growth of flex spaces. A ‘hub-and-spoke’ strategy will likely increase the demand for ‘plug-and-play’ office spaces which are readily-available on short notice and with flexible terms,” according to a Metro Manila office market report by global commercial real estate services firm Cushman & Wakefield.
The Philippine IT-BPM industry is expected to significantly benefit from lay-offs in tech firms abroad.
Cushman & Wakefield says mass job cuts among tech and start-up companies have driven the demand for outsourcing and IT-BPM related industries in order to further save up on operating costs amidst the challenging business environment.
“As demand starts to recover, average Prime and Grade ‘A’ rents are estimated to grow at a base scenario between 1.5%-2.0% in 2023,” its report read.
The report also noted that the availability of higher grade office developments is seen to drive vacancy rates downwards to 15% by end-2023.
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