IT-BPM sector pushes demand for office spaces

THE INFORMATION technology-business process management (IT-BPM) sector drove office demand in the real estate sector in the second quarter of 2022, according to realtors.

Mikko Barranda, Leechiu Property Consultants (LPC) director for commercial leasing, said demand for office spaces jumped by 106% to 255,000 square meters (sqm) from April to June this year from the previous quarter’s 124,000 sqm, and around 107,000 sqm of the demand came from the IT-BPM sector.  

Barranda said the Philippine offshore gaming operators accounted for 21,000 sqm of the demand during the quarter. “All the leasing activity in the past three months –from many new captives and companies doing business here for the first time– tells us outsourcing to the Philippines continues to be a reliable solution for companies in the West fighting impending global recession,” he said.  

Barranda said demand for spaces in the countryside mostly came from workers from the BPO sector, noting that the sector hired around 120,000 even during the pandemic. He said around 30% of the BPO workers hired during the pandemic were based in the provinces.  

He added the digital cities initiative allowed local governments to improve the situation in their areas and make it conducive for foreign investments in terms of talents, infrastructure, real estate, and business environment. “The BPO industry has changed dramatically the countryside development not only in mature provinces like Cebu, (and) Davao but also nearby islands in the Visayas and Mindanao,” Barranda said.  

He said the changes were “transformational due to the employment opportunities given by the BPO work itself directly and indirect employees that have been created due to the BPO sectors that have set up in these places.” (Joann Villanueva)