Ched Rick Gatchalian

Article (news)

IT-BPM sector expands office space amid POGO exit

Jekki Pascual

ABS-CBN News

MANILA — The Information Technology-Business Process Management (IT-BPM) sector has stepped in to help uplift the office market segment which was hit by the exit of the Philippine offshore gaming operators (POGOs).Based on data by Leechiu Property Consultants, in the first half of 2025, the IT-BPM sector already clocked in 365,000 sqm of office space, followed by traditional companies 354,000 sqm and government 21,000 sqm.The IT-BPM half-year number is already 86 percent of its 2024 full-year figure and 63 percent of its record in pre-pandemic 2019.<div><a href="https://www.abs-cbn.com/news/2024/11/8/marcos-issues-eo-officially-banning-pogos-1601">Marcos issues EO officially banning POGOs</a></div>“Some BPO companies are now saying ‘we’re preparing to take more space and we’re not gonna contract the existing footprint we have,” said Mikko Barranda, Director for Commercial Leasing of Leechiu Property Consultants.One of the factors Barranda noticed is the return to the office setup or hybrid setup compared to the work-from-home setup a few years ago. More investors are also coming in the country looking to set up office or expand existing spaces.“Healthcare, hotels, insurance, banking, they’re coming in here and instead of committing to a small number of people, they’re looking to move big,” said Barranda.Vacated spaces are going down. In the second quarter of the year, there are 203,000 sqm of vacated space, down from 267,000 sqm the previous quarter, and 312,000 sqm in the fourth quarter of 2024.There are 3.2 million sqm of office vacancy nationwide or about 18 percent. The vacancy rate varies per area like Bonifacio Global City has a 10 percent vacancy rate, while Makati has 15 percent, Ortigas/Mandaluyong/San Juan has 18 percent, Quezon City 19 percent, and the Bay Area at 27 percent and Alabang at 25 percent.Leechiu Property Consultants CEO David Leechiu said he expects growth for the sector even amid global uncertainties this year including the US tariff issue.<div><a href="https://www.abs-cbn.com/news/business/2025/7/10/ph-committed-to-trade-talks-as-us-slaps-20-pct-tariff-on-exports-economic-czar-1343">PH &#x27;committed&#x27; to trade talks as US slaps 20 pct tariff on exports: economic czar</a></div>“The tariffs just add uncertainty and uncertainty means cost cutting for the world and cost cutting means more jobs for the Philippines and India. This is not the time anymore to experiment on Africa, on Middle East, on Latin America,” he said on possibly more US companies sticking with existing offshore offices.

A property consultancy firm says the IT-BPM sector helped the office property segment following the exit of POGOs with the expansion of BPO firms.

A property consultancy firm says the IT-BPM sector helped the office property segment following the exit of POGOs with the expansion of BPO firms.