POGOs driving office demand, says Colliers
The influx of Philippine offshore gaming operators (POGOs) has greatly benefited the property market amid a slowdown in the country’s USD24 billion outsourcing industry. Dom Fredrick Andaya, a director at Colliers International Philippines, said the country would have seen double-digit vacancy rates in 2017 if POGOs had not come and saved the office market.
According to Andaya, the sector will likely occupy 1 million square meters of office space in Manila by yearend, almost 12 times more than in the last quarter of 2016. Andaya noted that office rents in the Manila Bay area, where the bulk of POGOs are located, have increased as much as 150% in the past two years, with some paying PHP1,500 (USD29.32) per square meter, which is similar to the rents in Makati.
The country currently has 56 licensed POGOs, up from 35 in 2016. There are also 204 accredited gaming support providers that sell their products and provide customer service to players abroad.