If there’s any doubt that a POGO (Philippines Offshore Gambling Operator) exodus is happening, we need only look to the real estate sector to find out the truth. The Lobien Realty Group (LRG) is warning Metro Manila vacancy rates could nearly double in 2021, at the rate operators are currently leaving the city.

In a media briefing, LRG chief executive officer Sheila Lobien noted the city closed 2020 with an 8% vacancy rate. “We feel that in the next few months, this can be double digit 12 percent to probably 14 percent vacancy rate… because many office buildings are being vacated. The exit of POGO affected the market’s vacancy rate,’’ Lobien said.

There will be a huge knock-on effect from this to landlords. Rental rates are expected to drop anywhere from 25 to 30%. Lobien explained that current rates have remained high thanks to some crafty budget management by property owners:

“[Rates] have not reflected the decrease due to the POGOs’ contractual agreements of about a year’s worth of security and advance deposits, which protected the landlords’ rent income during the lockdowns and despite the numerous lease pre-terminations.”