Nearly 40% of office space in the Bay Area remained vacant in the first quarter, reflecting continued weakness in one of Metro Manila’s largest office districts following the exit of Philippine Offshore Gaming Operators (POGOs), according to Savills Philippines, as reported by BusinessWorld .
Office vacancy in the district rose to 39.3% in the first quarter from 33.7% in the previous quarter, signaling a deepening slowdown in demand. The exodus of POGO firms has left large swaths of commercial space unoccupied, and few new tenants have stepped in to absorb the supply.
Industry analysts expect the vacancy rate to remain elevated in the near term as the office market adjusts to the loss of POGO tenants and broader economic uncertainty. Landlords are reportedly offering lower rents and flexible lease terms to attract traditional occupiers.