POGO office demand seen to nearly double by year-end

Office space demand from Philippine offshore gaming operators (POGO) is seen to nearly double by the end of the year as it already exceeded 2018’s full-year take up, a property consultancy firm said.

In a media briefing, Pronove Tai International Property Consultants chief executive officer Monique Pronove said demand from POGOs is projected to hit around the 450,000-square meter level by the end of the year.

As of the first half of 2019, office space transactions from POGOs already amounted to 319,000 sqm, a 216 percent rise from the 99,000 sqm take-up in the same period last year.

This is also 37 percent higher than the full year demand from POGOs of 229,000 sqm in 2018.

Pronove reported that the offshore gaming market was the biggest driver of office space demand in the first half, accounting for bulk of the 703,000 sqm total transactions during the period.

Asked what makes the Philippine office market attractive to the POGO market, Pronove attributed it do the openness of the country to accept the industry.

“We’re still the only country in Asia that legalizes offshore gaming,” Pronove said.

She added that among the factors leading to the higher demand from POGOs in the first half include the rise in number of cities issuing Letters of No Objections (LONOs). At present seven cities offer LONO to offshore gaming firms Makati, Paranaque, Mandaluyong, Las Pinas, Muntinlupa and Quezon City.

Pronove said there is also shift in strategy among landlords, as they are changing their behavior in accepting POGOs as tenants. This may be influenced by the moratorium on PEZA applications in Metro Manila.