Former POGO offices find new life as Metro Manila office market stays resilient

Companies are moving into ready-built workspaces to cut costs as office demand remains strong despite a 19% vacancy rate.

Companies are giving former Philippine offshore gaming operator (POGO) offices a second life as businesses look for faster and cheaper ways to expand.

Many companies are choosing these offices because they already come fitted with essentials such as ceilings, carpets, air conditioning systems, and basic office layouts. Instead of starting from scratch, tenants only need to make minor renovations to match their branding and operational needs, according to Lobien Realty Group CEO Sheila Lobien. Existing fit-outs help businesses cut upfront costs, shorten construction time, and begin operations much sooner.

The trend is becoming more attractive as businesses remain careful with spending while continuing to grow. Some landlords and workspace providers are also offering to shoulder fit-out costs and recover the expense through monthly lease payments, making it easier for tenants to move in without a large initial investment.

The setup has attracted multinational firms, business process outsourcing (BPO) companies, and other outsourcing providers looking for quality office space without the usual capital outlay.

The trend comes as Metro Manila’s office market continues to hold up better than expected. Office vacancy stayed at 19% in the second quarter while average rents climbed to around ₱1,000 per square meter. Demand also remains strong, with the IT-BPM sector now accounting for 52% of leased office space in the capital, up from 45% just two quarters earlier.

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