On­line gam­ing firms driv­ing up ofc de­mand

The Philippine Star - - BUSINESS - By CATHERINE TALAVERA

The Metro Manila of­fice mar­ket saw a surge in de­mand from Philip­pine on­line gam­ing op­er­a­tors (POGOs) in 2017, which com­pen­sated for the de­cline in take up from busi­ness process out­sourc­ing (BPO) firms, a prop­erty con­sul­tancy firm said.

In a quar­terly brief­ing yes­ter­day, Col­liers In­ter­na­tional Philip­pines se­nior re­search man­ager Dinbo Macaranas re­ported that net take-up in the Metro Manila of­fice mar­ket ex­ceeded the com­pany’s pro­jec­tions for 2017.

“We were ex­pect­ing a net take up of around 550,000 square me­ters but be­cause of a very strong fourth quar­ter we saw net take up reach 639,000 sqm,” Macaranas said.

Macaranas at­trib­uted the bet­ter than ex­pected take up to the grow­ing de­mand from POGOs as well as tra­di­tional com­pa­nies.

Col­liers said the vol­ume of trans­ac­tions reached 870,000 square me­ters, of which about 312,000 sqm came from POGOs.

It added that POGOs ac­counted for 35 per­cent of the to­tal trans­ac­tions, higher than the nine per­cent con­tri­bu­tion in 2016.

Last year, of­fice space takeup from POGOs in Metro Manila only hit 80,000 sqm.

“The surge was also driven by the crack­down on off­shore gam­bling en­ti­ties in other coun­tres which forced POGOs to look for vi­able al­ter­na­tive lo­ca­tions such as the Philip­pines,” Col­liers said.

“This lat­est de­vel­op­ment puts the Philip­pines as a po­ten­tial pre­miere gam­bling des­ti­na­tion in Asia, strength­ened by the coun­try’s im­proved re­la­tions with China since the Duterte Ad­min­is­tra­tion took of­fice,” it added.

Col­liers also re­ported that the Metro Manila of­fice mar­ket saw a rise in takeup of nonBPO firms, ac­count­ing for 40 per­cent of the trans­ac­tions last year.

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