Last year, Offshore gaming companies were the surprising variable that had managed to occupy a sizeable share of Manila’s office space leasing market. The take up was rapid and furious as gaming companies were seen to even outpace the demand of BPOs and IT-BPM companies for office spaces.
This year, the demand for office spaces by offshore gaming companies is being projected to topple the demand by BPOs. This is due to the Philippine Amusement and Gaming Corporation (PAGCOR) easing its cap on the licenses granted to the Philippine Online Gaming Operators (POGOS).
Last year, BPO direct investments were recorded at a 34 percent growth rate as BPO companies managed to take up a total of 350,000 square meters of office spaces in Metro Manila. The BPO growth and its demand for office spaces found itself depressing in its growth rate, which is 30% down compared to the bracket set, midyear during 2016.
According to Leechiu Property Consultants, offshore gaming companies managed to take up 230,000 square meters of office spaces last year. It is a 306% jump from the 2016 take up rate of 56,000 sqm. Leechiu further noted that the Bay City in Pasay, Metro Manila was the hotbed for offshore gaming companies. One factor considered is the city’s proximity to PAGCOR’s entertainment city where over 70% of the take up by offshore gaming companies were in Pasay – Bay City. The rest comprised of BGC with 16 percent and Makati with 13 percent.
The take up of office spaces has consequently created a shortage of available offices from offshore gaming companies that are looking to house their operations.
With the Philippines IT-BPM & BPO industry set for a rebound in 2018, consultant firm Santos Knight Frank have also projected that BPOs will soon return to their lofty place as Manila’s resident take up entities for 2018.
“We’re seeing a lot of new captives, new BPOs coming in the Philippines,” said Rick Santos as quoted by GMA News.
“All of these BPO companies still need the space they need to grow. It’s just that the amount for viable space they can go into has been limited because of the little slowdown in the release of PEZA certificates for the upcoming developments,” Mr Salvador noted.
The estimated total of 946,782 square meters of leasable office space is expected to boost the current supply of offices numbered around 4.5 million sqm.
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