Leechiu sees resurgence of POGOs’ office take-up
LOCAL operators of online gaming have taken up significant space during the first half of the year, Leechiu Property Consultants said on Wednesday.
“POGOs have taken relevant space,” said Leechiu Property Director for Commercial Leasing Mikko Barranda, referring to Philippine Offshore Gaming Operators, which cater to customers overseas.
“In the last quarter alone, they have clocked in close to about 77,000 square meters (sq.m.),” he said in a media briefing.
The firm reported that about 88,000 sq.m. of office space were taken up by POGOs during the first half of the year compared with the three-year total of 89,000 sq.m.
Mr. Barranda said POGOs mostly took occupancy within the Philippine capital’s bay area, which recorded the largest demand at 101,000 sq.m.
He said gaming operators had been consulting the firm for about 80,000 sq.m. of space, adding that “whether that becomes real transaction we will find out in the next quarter.”
Leechiu reported a total demand of 554,000 sq.m. in the country, up 46% from the 379,000 sq.m. recorded in the first half of 2022. Metro Manila made up 77% of the total demand during the semester.
Provincial demand accounted for about 23%, with Cebu having the largest demand at 66% or 85,000 sq.m. and Clark, Pampanga making up 20% or 25,000 sq.m.
The information technology and business process management (IT-BPM) sector’s total demand reached about 237,000 sq.m. during the first half. Other sectors recorded a demand of 229,000 sq.m.
Meanwhile, Mr. Barranda said office supply might start declining starting in 2024 due to the limited number of new projects that are up for completion.
“Supply would go down significantly and that’s [mainly] on the developers here that don’t want to build because of the market. But that is also an opportunity for someone that has land in a nice location,” he said. — Adrian H. Halili
