The Philippines reached its highest office demand since 2020 as it registered 255,000 square meters (sq.m.) of office space in the second quarter of the year.
In a market briefing by real estate firm Leechiu Property Consultants (LPC), office take-up suggested a “strong growth momentum” as it surged by 106% from Q1’s 124,000 sq.m.
LPC Director for Commercial Leasing Mikko Barranda said that the IT-Business Process Management (IT-BPM) industry continues to take the lead in the office market as it accounts for 107,000 sq.m. of space. The majority of the deals are in Metro Manila.
Meanwhile, Philippine Offshore Gaming Operators (POGOs) took up 21,000 sq.m. as gambling firms steadily re-enter the Philippine shores.
Baranda stated that all of the leasing activity in the past three months suggests that the Philippines “continues to be a reliable solution for companies in the West fighting impending global recession.”
As for the IT-BPO headcount, LPC’s study shows that it grew by 15% from 2019 to 2021 as 120,000 Full-Time Employees (FTEs) were hired despite the pandemic.
With firms adopting hybrid set-ups, the real estate firm is still confident that it would continue to take up office space — albeit at a more modest rate — in the coming months.