Take-up of office spaces in Metro Manila slowed down by more than a fifth during the second quarter of 2018, as information technology-business process management (IT-BPM) firms put their expansion plans on hold due to uncertainties in accreditation from the Philippine Economic Zone Authority (PEZA).
This is according to real estate consultancy Pronove Tai International, which reported on Thursday, July 19, that the spaces taken up by firms for the April to June period went down by 22% to 214,000 square meters (sq.m.) from the 262,000 sq.m actual take-up in the previous quarter.
Traditional companies drove the demand during the period, taking up 43% or 92,000 sq.m., outpacing the IT-BPM sector which was previously the top driver for office spaces in the metro. IT-BPM firms accounted for 32% of 69,000 sq.m., while offshore gaming firms expanded to 21,000 sq.m. Flexible workspaces provided the remaining 2,000 sq.m.
“The expansion (of IT-BPM) is not impressive as it was before. The basic fact of why they are here is the quality of service that we offer, however there’s these uncertainties [PEZA accreditation] is still significant,” Pronove Tai Chief Executive Officer Monique Cornelio-Pronove said in a quarterly briefing in Makati on Thursday.
PEZA grants fiscal and non-fiscal incentives, such as income tax holidays and exemption from limitations in the employment of foreign nationals, to locators in IT parks such as business process outsourcing firms. The current administration’s delays in handing out such accreditations however have
“If you don’t have PEZA accreditations happening, the significance of PEZA is under threat,” Ms. Cornelio-Pronove said. — Arra B. Francia

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