Real estate consultancy firm Colliers is projecting a significant surge in the supply of—and demand for—flexible work spaces within Metro Manila alone, and urged both tenant and landlords to consider this in their diversification strategies, especially in the wake of the COVID-19 pandemic.
Data collected by Colliers show that the stock of flexible workspace in the national capital region reached 220,000 square meters at the end of the third quarter of 2022, or 2 percent of available spaces in Metro Manila.
By its estimates, Colliers said the supply of flexible workspace will increase to 10 percent within the next 12 months. It added that the high-quality office towers and attractive lease rates should make these sites viable for flexible workspace operators.
Colliers said tenants remain on a wait-and-see mode and with short-term lease plans to consider flexible workspaces, particularly those located in Fort Bonifacio, Makati central business district, and Ortigas Center that offer new and quality flexible workspaces at attractive rates.
The take-up for flexible workspaces will likely be driven by traditional occupiers engaged in construction, architecture, logistics, financial technology, and start-up companies, Colliers said.
Colliers believes that regardless of industry, flexible workspaces are a feasible alternative for companies seeking short-term leases and looking to right-size operations.
Patricia Cruz, Associate Director of Office Services – Tenant Representation, said the hybrid work arrangement that gained traction at the height of the Covid-19 pandemic will likely persist, especially among multinational companies. “Occupiers should revisit their short- and long-term growth projections to properly assess their real estate needs and take advantage of the flexible work solutions as an interim alternative,” she said.
Maricris Sarino-Joson, Director and Head of Office Services – Landlord Representation, said office landlords should either explore partnerships with flexible workspace operators or launch their own brands. She added that landlords in key metropolitan areas, such as Clark, Cebu, Davao, and Iloilo, should also capture flexible workspace take-up.
“Because of the new ways of working, it is now crucial for building owners to have a flexible workspace provider in their buildings to capture new office space requirements. Given all the uncertainties, flexibility will be the name of the game,” said Sarino-Joson.
