By Alexandria Grace C. Magno
THE PHILIPPINES’ flexible workspace industry is growing rapidly as corporations and staff increasingly prefer adaptable office setups over long-term leases, Colliers Philippines said.
In a report released on Wednesday, the property consultancy said the concept of flexible workspaces has modified from a distinct segment offering within the Nineteen Nineties to a mainstream solution, driven by technology adoption, shifting workforce needs and changing business models.
“Once concentrated in Bonifacio Global City (BGC) and the Makati central business district, operators began expanding into Ortigas Center and Quezon City in response to growing demand outside traditional business districts,” Colliers Director and Head of Office Services–Tenant Representation Kevin Jara, said within the report.
“From just 10,000 square meters (sq.m.) in 2011, flexible workspaces grew at an annual rate of about 30%, reaching 236,000 sq.m. by the top of 2019,” he added.
The sector’s early momentum got here largely from startups, freelancers and small-to-medium enterprises drawn to cost-efficient and scalable space options.
The pandemic and the rise of hybrid work further accelerated demand for flexible setups that may easily adjust in size depending on workforce levels.
Colliers said operators at the moment are exploring recent business models, moving away from traditional lease arrangements toward joint ventures or management contracts with landlords.
Metro Manila stays the most important hub for flexible offices, particularly in BGC and Makati. But inquiries for spaces in provincial cities are rising, as firms seek to locate closer to employees, tap regional talent and reduce dependency on congested urban centers.
This growing provincial interest offers significant opportunities for expansion, especially in areas with limited traditional office supply, Mr. Jara said. Colliers can be seeing operators repurpose unconventional spaces like malls, hotels and residential properties, and even parking structures into flexible work environments.
Colliers noted that while the pandemic caused emptiness rates to spike to 41% in 2020, the market has steadily recovered. As of the third quarter, Metro Manila’s flexible workspace supply reached 267,000 sq.m., with emptiness easing to about 21%.
Natural disruptions have also influenced the market. Typhoons, floods and brownouts have encouraged firms to make use of flexible offices as backup sites for business continuity.
“These workspaces provide ready-to-use locations that may be activated during emergencies,” Colliers said. “Some flexible-workspace providers also offer workspace recovery plans, ensuring uninterrupted access to skilled environments during natural disruptions.”
To remain competitive, operators are expanding their service offerings beyond desk rentals. Many now provide managed offices, wellness amenities, and employer of record services to assist global firms enter the Philippine market and manage local compliance.