FLEXING RETURN TO OFFICE PLANS
ASSESSING THE VIABILITY OF FLEXIBLE WORKSPACES POST COVID 19
Flexible workspaces are likely to play a crucial role in companies’ real estate diversification strategies post-COVID-19.
The popularity of these spaces is thriving especially as firms implement split operations. With opportunities for greater take up, developers should be quick in capturing demand from outsourcing as well as traditional occupants.
The availability of highquality, new office spaces also bodes well for further expansion of flexible workspace supply within and outside Metro Manila.
Because of 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.
As hybrid work gains traction, flexible work has become the focus of multinational companies.
FLEXIBLE WORKSPACES
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.
Colliers Philippines encourages tenants still on a wait-and-see and with shortterm lease plans to consider flexible workspaces. Companies based in Metro Manila should explore buildings in Fort Bonifacio, Makati CBD, and Ortigas Center that offer new and quality flexible workspaces at attractive rates.
In our view, landlords should explore partnerships with flexible workspace operators or launch their own brands. Landlords in key metropolitan areas such as Clark, Cebu, Davao, and Iloilo should also capture flexible workspace take-up.
Tenants should revisit their business continuity plans and consider integrating flexible workspaces into their hybrid work arrangements. Flexible workspace operators may consider occupying space in transit-oriented retail projects and partner with inmall retailers to add value to their services and lure more consumers to take-up flexible workspaces.
RISING DEMAND FOR FLEXIBLE WORKSPACES
Metro Manila’s flexible workspace stock as of the end of Q3 2022 reached 220,200 square meters. This represents about two percent of the total leasable office space in the capital region.
Metro Manila’s flexible workspace stock is likely to grow by about 10 percent in the next 12 months. The availability of high-quality office towers, complemented by attractive lease rates should make these sites viable for flexible workspace operators.
Several high-quality, green and sustainable buildings are in the pipeline, which are ideal locations for new flexible workspaces. We see flexible workspace supply rising in Metro Manila and key areas such as Cebu, Davao and Pampanga as landlords take advantage of greater demand due in part to firms’ strategy of diversifying their real estate portfolio.
Colliers sees take-up for flexible workspaces to be driven by traditional occupiers engaged in construction, architecture, logistics, fintech as well as startup companies.
Outsourcing firms with immediate office space requirements should also consider plug-and-play or fitted offices. Flexible workspaces are popular among companies weighing office space expansion plans in the near term.
Colliers believes that regardless of industry, flexible workspaces are a feasible alternative for companies seeking short-term leases and looking to rightsize operations.