For years, the biggest demand of
the Philippine office market comes from the Business Process
Outsourcing sector. However, at the onset of 2017, the offshore
gaming sector has recovered and shown potential to become a
significant driver of office demand. All thanks to the Philippine
Amusement and Gaming Corporation (PAGCOR) for allowing the
resumption of licensing for online/offshore gaming firms in the
In hopes of keeping the momentum,
offshore gaming is continually cementing their path in becoming one
of the major market drivers in the Philippines. In the first half
alone, PAGCOR registered 3 billion in tax revenue from said
offshore gaming firms. Despite the Philippine Economic Zoning
Authority's refusal to accredit, offshore gaming remains to be a
lucrative industry due to its ability to cover multiple business
fronts. It can cater to almost any game in a casino or sporting
events, fantasy sports and even reality shows. Data shows that
casinos that employed online gaming services logged a 110 percent
increase in revenue.
As more and more people venture
into the industry, the off-shore gaming firms eventually became the
occupants of various office submarkets specifically in the Bay area
- a viable location to take considering its proximity to the
biggest casinos in the Philippines. The offshore gaming industry
just took over a substantial amount of pre-committed office spaces
in the country.
Regardless of the new 700,000
office space completion by the end of 2017, the
office space supply in Metro Manila continues to dwindle down.
In the past year alone, Filinvest Cyberzone Tower 2 & 3 in the
Bay area were leased out by these online gaming firms. These firms
are also quickly expanding at locations in the Visayas. Cebu is
benefitting the most by receiving some of the spillover demand. One
example is Mactan's Tower One Plaza Magellan that is now fully
pre-leased by the same sector.
This astounding feat made it the
second largest demand in the office markets. The huge potential of
these gaming firms to drive rental rates are now recognized.
However, for the second quarter, reports said that Metro Manila
rents remain affordable. In the Bay area where most online gaming
firms are housed, the average net rental rate is at 712.8 pesos per
square meter monthly. This is lower compared to Makati and BGC rate
of 1,038.1 and 912.3 pesos, respectively.
It is a consensus among experts
that PH is one of the best places to invest in now. PAGCOR Chief
Andrea Bautista also thinks that the changes introduced by the new
administration and the Filipino hospitality also plays a big role
in this remarkable market take-off.