MANILA, Philippines – Office space demand from Philippine offshore gaming operators (POGO) surged by 118% year-on-year to 106,000 square meters (sqm) in the first quarter of 2019, according to property consulting firm Pronove Tai.
Pronove Tai president and chief executive officer Monique Cornelio Pronove in a statement on Friday, April 12, said that because of the growing demand, POGOs began to move into pre-leasing, or leasing from soon-to-be built establishments.
“Since there is very limited available space in Makati and Bay Area, they have already ventured into locations such as Pasig and Parañaque,” she added. (READ: How China’s online gambling addiction is reshaping Manila)
Despite the triple-digit demand growth from POGOs, the information technology-business process management sector still proved to be the top driver of demand for offices.
“ITBPM is still the top demand driver accounting for 36% or 130,000 sqm of the Q1 transactions, followed by a strong 35% showing from traditional offices, then Offshore Gaming at 29%,” Pronove said.
In its Metro Manila Office Market Overview for the first quarter, the company noted a 40% increase in office space demand, causing further growth in the demand in the real estate industry.
Office space supply grew by 3% to 276,000 sqm in the first quarter, most of these from the cities of Makati and Taguig. Ortigas Center, however, posted the fastest growth in supply with the completion of the Podium West Tower. (READ: Cement shortage seen to delay construction projects – Pronove Tai)
Actual transactions in the first 3 months grew by 39% year-on-year to 364,000 sqm. Vacancy rates remained manageable at 6%.
"We consider 5-7% as the manageable vacancy for the office sector – just suitable allowance for expansion and growth for the companies within the building or the district," Pronove said. – Rappler.com