(File photo)
MANILA – The business process outsourcing (BPO) had the most number of office space demand in 2020, the Lobien Realty Group said on Friday.
In a virtual briefing, chief executive officer Sheila Lobien said the BPO sector has again dominated the demand for office space last year amid the exit of Philippine Offshore Gaming Operators (POGOs) mostly operated by Chinese nationals.
Lobien said office demand from POGOs in 2019 comprised 36 percent of the total demand, surpassing demand from the BPO sector at 30 percent.
But in 2020, office space demand from POGOs shrank to 16 percent while BPO firms comprised 41 percent of the total demand last year.
Lobien said that rental rates last year started to decline and are expected to be softer this year because of the lower demand for office space.
The current vacancy rate of office space in Metro Manila is at 8 percent, she said.
However, the property adviser group projects the vacancy rate to go double-digit this year between 12 to 14 percent because of many office buildings that are being vacated by POGOs.
"Well, the exit of POGOs affected the vacancy rate here in the market,” Lobien added. (PNA)
