Flexible workspaces to play a critical role in real estate diversification strategies

Global property management company Colliers said flexible workspaces will likely become a critical role in companies’ real estate diversification strategies post-Covid-19.

According to company data, the inventory of flexible workspaces in Metro Manila as of the end of the third quarter of 2022 was 220,200 square metres. This represents about 2 percent of the total leasable office space in the metropolitan area.

“The availability of high-quality office towers, complemented by attractive rental rates, should make these locations viable for operators of flexible workspace,” said Joy Bondoc, director of research at Colliers.

He added that project acquisitions of flexible workspaces will be driven by traditional occupiers involved in construction, architecture, logistics, fintech and startups.

Meanwhile, outsourcing companies with immediate office space requirements should also consider plug-and-play desks since flexible workspaces are popular among companies considering office space expansion plans in the near term.

Colliers believes flexible workspaces are a viable alternative for any company seeking short-term leases and looking to scale operations.

“While they justify traditional occupied office space, they should also consider occupying flexible workspaces, particularly those located near residential areas for their employees,” Bonduc explained.

Patricia Cruz, Associate Director Office Services – Tenant Representation, added that with hybrid working gaining momentum, flexible working has become a focus for multinational companies.

“Occupants should reconsider their short- and long-term growth expectations to properly assess their real estate needs and utilize flexible working solutions as a temporary alternative,” Cruz noted.

Colliers also urged office owners to explore partnerships with flexible workspace operators or launch their own brands.

For example, Ayala Land introduced ClockIn, Robinsons Land launched Work.Aly while Vista Land created World Spaces.

Finally, landlords in major metropolitan areas such as Clark, Cebu, Davao, and Iloilo should also take advantage of flexible workspace.

It’s now critical for building owners to have a flexible workspace provider in their buildings to meet new office space demands, said Maricris Sarino-Joson, Colliers Director and Head of Office Services – Owner Representation.

“Given the new ways of working, plus all the uncertainties, flexibility will be the name of the game going forward,” commented Sarino Joseon.

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