MANILA, Philippines – Coworking and flexible workspace provider KMC Solutions will be expanding its footprint within and outside Metro Manila amid the growing demand for multinational companies to locate in the Philippines.
The company on Wednesday, April 10, said that it plans to expand from about 57,151 square meters (sqm) and 10,367 seats to 77,236 sqm and 14,229 seats by year-end.
"That's big growth, but that's not something we're not used to because we're trying to catch up with the demand," KMC legal counsel and co-founder Amanda Rufino Carpo said.
"The central business districts [already] have a lot of congestion which gives the need for coworking spaces [as well]."
Aside from catering to local companies and fostering startups, Carpo still credits the demand from foreign firms, mostly business process outsourcing companies and back offices, that are attracted to the country's growing skilled workforce.
Foreign companies make up around 95% of KMC's clients while startups only take up less than 5% of the total portfolio.
Carpo said these foreign firms are also motivated to set up shop faster in the Philippines amid the rapidly changing business landscape. (READ: Building a case for working in a coworking space)
"[A]nd the workplace is changing, whether they're in real estate or they're in corporate, there is a need for flexible spaces at some point," she added.
For this year, KMC is planning to open up spaces for its clients in the following areas:
Backed by the ASEAN Industrial Growth Fund, KMC managing director and co-founder Michael McCollough said they would need roughly $1 million per floor to fund this year's expansion plans. – Rappler.com