Aseana City to benefit from high office space demand

MANILA, Philippines — Aseana City, a mixed-used development in the Manila Bay area, is seen benefiting from the continued growth in office space brought about by the booming offshore gaming industry.

A report by real estate consultancy firm Colliers International Philippines said offshore gaming operators have offset the decline in demand for office space from outsourcing companies last year.

The trend is expected to continue, Colliers noted.

“(In 2017), it is estimated that roughly 35 percent of 870,000 square meters in office space transactions in Metro Manila were from offshore gaming...a large increase from the mere 80,000 sq m in 2016,” it said.

There are 51 offshore gaming operators currently in the Philippines, with majority operating in the Manila Bay Area.

The locators typically occupy office spaces ranging from 10,000 sqm to 30,000 sqm.

Offshore gaming companies are expected to take up new office spaces at Aseana in the coming months.

“Even as new supply within the Manila Bay area is expected to increase with the addition of around 240,000 sqm of stock by 2018, overall vacancy is forecast to remain below three percent,” it said.

Traditional companies still had the most share at 40 percent of the total transactions for office spaces.

 But this was followed closely by the offshore gaming industry at 35 percent.

 Aseana City is a 107.5-hectare master planned reclamation development of D.M. Wenceslao & Associates.   It is the only central business district in Metro Manila with a casino and entertainment district.

It also has the 100-hectare Pagcor Entertainment City, the Las Vegas style casino district, which has three completed integrated casino resorts – Solaire, City of Dreams, and Okada Manila.

The Philippine Amusement and Gaming Corp. reported that its gross gaming revenue rose 7.6 percent  to P57.34 billion last year, with the entry of offshore gaming operators.

This year, Pagcor expects revenues to hit P61.66 billion as online gaming is seen becoming even more popular.

Colliers said office capital values have been rising steadily at Aseana, supported by low vacancy rates due to the lack of office space in the area.