MANILA - Business process outsourcing firms are buying more office space in the provinces, reflecting the industry's move to the countryside, a property consultant said Monday.
Online gaming companies, on the other hand, are expanding in Metro Manila and are on track to match demand from the outsourcing industry, said Leechiu Property Consultants Inc CEO David Leechiu.
In the third quarter of this year, office space demand from online gaming was at 125,000 square meters, roughly half of the 268,000 square meters demanded by BPOs.
Leechiu also noted rising demand from co-working spaces.
"The constant quest to increase the bottom line by controlling capital expenditures is reshaping the office industry," Leechiu told reporters.
"It is pushing BPOs to seek alternate locations outside Metro Manila, encouraging online gaming firms to try Manila, and driving corporates seeking less stringent lease terms towards flexible work spaces," he said.
Annual office take up for the full year is expected to grow by 19 percent, as online gaming compensates for the slowdown in BPO demand, he said.