Flexible office spaces are gaining ground in Metro Manila’s subdued property market, with net take-up rising 185 percent in the first nine months of 2026 as companies seek to contain costs and adapt workplaces to changing business needs.
Kevin Jara, head of Office Services – Tenant Representation at Colliers, said the segment recorded positive net take-up of 7,600 seats during the period, while vacancy stood at 17%, below the 19.5% recorded in the traditional office market.
“Flexibility is becoming a general trend right now in the office market,” Jara said, pointing to growing interest in third-party workspace providers as firms seek to limit upfront capital spending and manage operating expenses.
Unlike conventional leases, flexible offices typically bundle rent, utilities and facilities management into a single arrangement. Operators also shoulder fit-out investments, allowing occupiers to establish or expand operations without committing substantial resources to office construction and long-term leases.
KMC, for example, took up about 14,000 square meters in the Ortigas-C5 corridor in the third quarter, illustrating demand for flexible workspace solutions.
The segment’s performance contrasts with the wider office market, where net take-up reached just 125,000 square meters in the first nine months of 2026. Colliers has lowered its full-year forecast to 165,000 square meters, down from the 300,000 square meters recorded in 2025.
Transaction volume also declined 26% to 500,000 square meters amid geopolitical uncertainty, inflation and rising operating costs, reflecting persistent pressure on corporate real estate decisions.
Still, Jara said changing work arrangements, artificial intelligence and the expansion of global capability centers could reshape office demand rather than eliminate the need for physical workplaces.
“It doesn’t mean that it means less office space. It means that work is still currently being transformed,” he said.
For occupiers navigating uncertain growth prospects, flexible offices offer a way to preserve expansion options while limiting long-term commitments. The challenge for providers will be sustaining demand as companies balance cost discipline with evolving workforce and operational requirements.
