Leechiu Property Consultants (LPC) said the information technology-business process management (IT-BPM) and the Philippine online gaming operations (POGOs) can help in the quick recovery of the country from the new coronavirus disease 2019 (COVID-19) pandemic.
“The sustained growth of these sectors will allow us to bounce back from this pandemic swiftly. We need as many employers as possible to help our economy,” said David Leechiu, LPC chief executive officer.
LPC data showed net absorption of office space in the first half of the year hit 145,000 square meters (sq.m.) with new leases at 234,000 sq.m., and vacated spaces at 89,000 sq.m.
LPC said new leases increased by approximately 50 percent to 77,000 sqm. with 42,000 sq.m. contributed by IT-BPM froms the first quarter to the the second quarter.
Cebu was the single biggest recipient of demand at 40 percent.
“Meanwhile, POGO and other companies have cut back resulting in a higher 8 percent vacancy rate. A total of 89,000 sq.m. were vacated, with POGOs accounting for 54 percent; and IT-BPM, 12 percent,” it said.
“Tax regulations and movement restrictions curtailed POGO growth and, in some instances, led to contraction,” LPC added.
Leechiu said “the Philippine office segment has not yet entered a point of contraction” and observed the IT-BPM and POGO sectors will continue to be two major pillars of growth in the office space segment of the property market.
Leechiu noted that of the 482,000 sq.m., live requirements for the second half of the year, 68 percent are cornered by the IT-BPM and POGO sectors.
LPC expects office demand to hover between 600,000 sq.m., and 800,000 sq.m., by yearend.