LPC states BPOs and e-commerce driving a steadily improving office demand in Q1

Leechiu Property Consultants (LPC) stated that 109,000 square meters of commercial space had been least in the first quarter (Q1) of 2021, up 22% from 89,000 sqm and 68% from 65,000 sqm, in Q4 and Q3 of 2020, respectively.

The information technology and business processing management sector continue to amass the majority of rentals at 33,000 sqm, down from 34,000 in Q4 of 2020.

E-commerce comes in at 2nd with 19,000 sqm of leased spaces, more than triple the space they had occupied in the previous quarter. The sector was also dubbed a “sunshine industry” by LPC.

The firm also noted that Philippine offshore gaming operators (POGOs) registered no demand in the current and last quarters but account for 12% or 31,000 sqm of office space expected to open in 2021.

Altogether, active office requirements are at 266,000 sqm with BPOs and retail comprising 33% and 7% of demand, respectively.

“Despite the hardships the retail industry has experienced we are seeing companies adapt, innovate and commit to space in anticipation of a recovery,” said Miko Barranda, LPC associate director. (via CNN Philippines)

SOURCE: CNN Philippines