POGO exit will have little impact on the office sector – experts
A possible ban on Philippine Offshore Gaming Operators (POGOs) will not negatively impact the office market, said property experts.
Real estate firm JLL said that a POGO exit would contribute to the rise of vacancy rates, but not in a sizable amount.
JLL Philippines Head of Research and Consultancy Janlo de los Reyes explained that the Philippines have already seen the exit of different POGOs over the past two to three years. Only around 34 POGO operators are in the country as of October 6.
“So definitely, there might be some impact still, but not as sizable as I would like to think,” he added.
Meanwhile, Colliers Philippines said a POGO departure could open up 650,000 square meters (sq.m.) of vacant office space. However, transaction activity and demand take up can easily offset it.
“We need to move on from POGOs for the office sector. I think half of them have already left the country. The current contribution of POGOs to total office stock is just 5%,” said Colliers Associate Director Kevin Jara.
And while POGO-induced office vacancies are expected to take six to seven years to cover up, Jara said that the consistent transaction activities and positive demand take-ups in the office sector should be enough for the government to finalize the exit of POGOs in the country.
