The online gaming sector is providing a lifeline to the Philippine office space segment as the demand for business process outsourcing (BPO) softens.

In the latest real estate market call, Leechiu Property Consultants reported that the online gambling sector is now the second largest occupier of office space in Metro Manila after the BPO sector.

Data showed that office space grew by 3.6 percent to 653,589 sqm in August 2017 against the 630,000 sqm posted last year.

“There is strong office take-up in 2017 despite the softening of the IT-BPM demand,” the property consultancy said. “Demand for Service Offices/Co-working spaces increased significantly as some multinational companies seek to manage capital expenditure, increase work mobility, and take advantage of flexible lease terms.”