Manila flexible workspaces to grow by 10% yearly – Colliers

MANILA, Philippines – Flexible workspaces in Manila are seen to annually grow by 10% in the next 3 years as operators look to expand their footprint, according to Colliers International Philippines' Flexible Workspaces Outlook on Tuesday, July 2. 

The positive outlook for the office subsector rides on the back of equally healthy growth in micro, small, and medium businesses as well as multinational firms seeking plug-and-play locations in the Philippines, Colliers added. (READ: Megaworld-WeWork deal seen to draw more foreign firms to Philippines)

The real estate consultancy services firm also expects policy reforms in ease of doing business to boost the growth of flexible workspaces in Manila. Colliers particularly noted that the entry of the 3rd telecommunications player would support the office segment.

To meet the rising demand, Colliers International Philippines director for office services Maricris Sarino Joson said partnerships can help increase the supply in malls, condominiums, hotels, and dormitories.

"Large flexible workspace operators should consider partnering with officials of second-tier cities that are viable outsourcing destinations," she added, referring to Bacolod, Cebu, Clark, Davao, and Iloilo, as well as the province of Laguna.

"The project teams of outsourcing firms could start operating in coworking facilities in these cities where they could train college students that the BPOs (business process outsourcing) could tap in the future."

Colliers also forecast that there would be more mergers and acquisitions in the flexible workspace sector – either from among small, local players or between foreign operators and local companies – to expand their coverage. 

Other trends seen for 2019 are the improvement of amenities in these workspaces as well as better workspace designs to suit the needs of multinational corporations. –