POGOs Show Reduced Office Leasing in Q3, Leechiu Reports

Property consulting firm Leechiu Property Consultants disclosed that Philippine Offshore Gaming Operators (POGOs) leased a reduced amount of office space in the third quarter of 2023. According to the latest briefing, POGOs secured only 18,000 square meters (sqm) of office space from July to September, a significant decrease from the 77,000 sqm acquired in the previous quarter from April to June.

Director for Commercial Leasing Mikko Barranda cited the impact of the new guidelines in the industry, which caught many operators off guard, resulting in a cautious approach to market activity. He highlighted the recent announcement concerning the application of new rules, indicating that this development became a key factor influencing the decline in leasing activity among POGOs.

Barranda expressed optimism that POGO activity might pick up in the final quarter of the year, particularly following the September 17 announcement regarding the issuance of licenses. He suggested that this development could potentially drive market activity in the upcoming months.

The Philippine Amusement and Gaming Corporation (PAGCOR) placed all offshore gaming operators in the Philippines under probationary status in August, prompting active POGO licensees to reapply by September 15.

The Bay Area's overall demand for office space reached 133,000 sqm in the first nine months of the year, with POGOs contributing 68 percent of this demand, as indicated by the company's data.

Amid calls for a POGO ban by Philippine legislators citing social costs, economic managers have indicated their willingness to accommodate the potential exit of POGOs from the Philippines.