BPO office take-up to remain at 400,000 sqm —Santos Knight Frank

Demand for office space accredited by the Philippine Economic Zone Authority (PEZA) in Metro Manila is seen to remain at 400,000 square meters until next year, real estate consultancy firm Santos Knight Frank said Wednesday.

With the moratorium on new PEZA building approvals in Metro Manila, demand for PEZA space will continue to grow at its average annual pace, Santos Knight Frank senior director Morgan MicGilvray

“PEZA demand is still strong this year. It’s just been overshadowed by POGOs. It’s probably over 400,000 square meters, which is quite good. That can last through 2020 as well,” he told reporters in a press conference in Makati City.

President Rodrigo Duterte in June signed Administrative Order 18 which placed a moratorium on the processing of applications for ecozones in Metro Manila.

The demand, McGilvray said, will be catered by 23 PEZA zone applications that were already filed before the implementation of AO 18.

“BPO activity has continued to be very strong. I think that’s still going to be true, even after AO 18, ‘cause there is going to be a fair amount of PEZA zones available,” he said.

McGilvray noted the moratorium does not cover places outside Metro Manila such as Cebu and other nearby provinces.

“Provinces are now developing these high-quality BPO buildings that Grade A tenants want to be in. This opens up a lot more opportunities for firms in Metro Manila to go out and have success,” he said.

“Increase in demand is going to be in Metro Manila while there's still space to lease ... Firms don't have to rush to get out there,” McGilvray noted. —VDS, GMA News