Office demand from POGOs seen to remain high

MANILA, Philippines — The Philippine offshore gaming operators (POGO) sector is still expected to continue its take-up of office spaces despite concerns against the sector, a property consultancy firm said.

“I think the POGOs will continue to expand in the Philippines unless there’s a clear indication that they will be pulled out,” Leechiu Property Consultants (LPC) chief executive officer David Leechiu told reporters.

Leechiu said no anti-POGO statements or policies were mentioned during President Duterte’s trip to Beijing. “So it looks like it will keep growing based on what we’re seeing,” Leechiu said.

The Philippine Amusement and Gaming Corp.(PAGCOR) earlier imposed a moratorium on new POGO applications to last until the end of the year amid concerns raised on the industry.

Currently, there are 58 POGOs licensed by PAGCOR. Domingo said the regulator would only accommodate three pending applications, which may bring the number up to a maximum of 61.

Presidential Spokesperson Salvador Panelo said President Duterte would look into the possible impact of China’s appeal for the Philippines to ban online gambling.

As of August, the POGO industry remains the second largest driver of office space in Metro Manila, taking up 258,000 sqm of office space.

This is second to the IT-BPM industry with a takeup of 266,000 sqm.

Leechiu earlier said the POGO industry is projected to dethrone the IT-BPM industry as the top driver of office space by the end of the year, as it is seen to take up as much as 450,000 sqm of office space this year.

Despite concerns raised over the POGO industry, Leechiu said he has not seen a decline in interest for office space from POGO firms. “From how I read them, it’s business as usual,” Leechiu said.

Moreover, Leechiu emphasized that if POGOs are ever pulled out of the country, the real estate market will get hurt, but will have a “soft-landing” due to deposits, payment advances made by POGO firms, as they pay rent 24 months in advance.

“After having looked at this many many times, I think we will be okay. We will get hurt, it will be painful, but I think it will not be a total disaster,” Leechiu said.

He said the IT-BPM sector is seen to also absorb these office spaces that will be left behind.