The huge volume of office spaces vacated by POGOs (Philippine Offshore Gaming Operators) during the pandemic is seen to recover in 2025 yet, according to a property management consultancy firm.
Joey Bondoc, research manager of the leading property management and consultancy firm Colliers International-Philippine, said that cumulative POGO take up is expected to hit 700,000 square meters by 2025 yet.
Colliers’ Q4 2021 Property Market Briefing presentation showed a steady increase in POGO take up over a four year period. This year, the POGO office takeup is seen at 100,000 sqm and annual increments of 50,000 sqm. This means, POGOs will take up 150,000 by 2023 and 200,000 by 2024.
By 2025, POGOs are expected to occupy additional 250,000 sqm for total POGO occupancy rate in offices of 700,000 sqm, a recovery from the 612,000 sqm POGO vacated spaces in Metro Manila as of the last quarter of 2021.
Colliers' research also showed of increasing office supply staring this year with additional new supply of 897,000 sqm this year or total supply of 2.9 million sqm. New office supply is projected to slowdown at roughly 600,000 sqm spaces annually over the next three years.
The data also showed that net office space takeup is also just meeting demand over the four year period.
As of end 2021, there were 12.94 million sqm of office stock with total vacancy of 2.03 million sqm.
Overall vacancy rates in the metro also went up to 9.1 percent on average during the first year of the pandemic from only 4.3 percent in 2019. This worsened to 15.7 percent end of 2021.
Among the central business districts in Metro Manila, the so-called Makati Fringe posted the highest vacancy rate of 33.8 percent followed by the Bay Area with 28.3 percent and Alabang with 22 percent.
Makati CBD had only 9.7 percent vacancy rate, Fort Bonifacio with 10.7 percent and Ortigas Center with 13.5 percent.
The research also showed improving land values, which Colliers said indicative of recovery in the property sector in the National Capital Region.
For instance, land values in Makati CBD has been pegged at P830,000 to P847,000 per sqm, Fort Bonifacio at P800,000 to P816,000 per sqm., Manila Bay area at P352,000-P359,000 sqm, and Ortigas Center at P348,000-P355,000 per sqm.