A surge in offshore gaming firms is likely to drive up office rental prices in Metro Manila over the next year, says property consultant Colliers International.
Senior research manager Dinbo Macaranas noted that while demand for office space remained strong in 16Q4, driven by Information Technology and Business Process Management (IT-BPM) companies, gaming firms have begun to carve out their space too.
Colliers notes that an increase in rental prices is likely to occur in the next twelve months “as the surge of offshore gaming firms redefines the market.”
Last year, Philippines’ state-owned Philippine Amusement and Gaming Corp. (Pagcor) issued 35 offshore gaming licenses, and it is understood that another 25 licenses may be issued in the future.
CBD rents are forecasted to grow 5 to 6 percent over the next twelve months, while alternative locations will grow on average by 8 to 10 percent.
The property consultant also advised that tenants should be quick to lock in deals as “offshore gaming deals are [often] closed with minimal negotiations.”