MANILA – Santos Knight Frank, a real estate service company, said the business process outsourcing (BPO) sector will remain as a major driver of demand for office space market in the country.

In a report Friday, Santos Knight Frank Senior Director for Occupier Services and Commercial Agency Morgan McGilvary said office space demand from BPO firms remains strong in 2020 even after the government halted processing applications for economic zones in Metro Manila.

In June 2019, Malacañang issued a moratorium on accrediting office buildings in Metro Manila as ecozones to spur development outside the National Capital Region.

Despite the moratorium, Santos Knight Frank said BPO companies will still pursue expansions in Metro Manila.

A study of Information Technology and Business Process Association of the Philippines (IBPAP) and Everest forecasted that the IT and business process management sector will grow by three percent to seven percent annually.

Growth drivers of the industry will be in healthcare, animation, and game development.

With the growth of the industry, it will need 1.2 million square meters of office space, Santos Knight Frank added.

“In 2020, we expect BPO demand to be strong despite the limited amount of PEZA (Philippine Economic Zone Authority)-accredited office space. BPO demand is strongest in BGC (Bonifacio Global City) and Pasay, where rents should be going up,” McGilvary added.

On the other hand, Ortigas and Quezon City can be alternative locations for BPO firms with the increasing rents in BGC and Pasay City.

“Conversely, Ortigas and Quezon City may have more supply than demand, and rents will stay flat in those areas as the vacancy rates increase,” Morgan said.

The IT-BPO industry is seen to employ 1.57 million by 2022. (PNA)

Source: Philippine News Agency

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About Santos Knight Frank

Santos Knight Frank provides global real estate services. Since the company first opened its doors in 1994, it has become the Philippines’ first and largest fully integrated real estate services provider, with clients that include multinational corporations and institutional investors, as well as occupiers, owners and developers of real estate locally and across the globe.

The company’s partner, Knight Frank, is the largest independent global real estate consultancy. Founded in 1896 and headquartered in London, Knight Frank operates in more than 523 offices in 60 countries across the globe, including the strategically important partnership with Newmark Knight Frank in the U.S. (with Newmark Cornish & Carey in the West Coast).