POGOs drive office space demand in Philippines in 2019
The Philippine offshore gaming operators (POGOs) have overtaken the business process outsourcing industry’s demand for office space in the country this year, driving take-up to a record high, according to Leechiu Property Consultants (LPC). David Leechiu, chief executive officer at LPC, said office space take-up this year reached a record high of 1.7 million square meters, with POGOs driving demand and accounting for 738,000 square meters, 296,000 square meters of which were in Metro Manila, mainly in the Bay Area. Leechiu said the aggressiveness and the interest of POGOs to operate in the Philippines have contributed to the increased demand for office space. Meanwhile, the IT-BPM industry accounted for 573,000 square meters of space, a drop of 14%, with 428,000 square meters located in Metro Manila, the property firm said. Leechiu noted that the short supply of locations accredited by the Philippine Economic Zone Authority (PEZA) is likely to make the country a less attractive destination for IT-BPM companies seeking expansion. He added that there is a need for more PEZA-accredited buildings if the country wants to continue being a preferred destination for such firms.
