MULTINATIONAL office solutions firm International Working Group Plc (IWG) anticipates that more companies from the telecommunications and aviation sectors will tap coworking spaces for office flexibility.
“With the GDP (gross domestic product) growth rate in the Philippines being as high as it is, and with the many game-changing legislation that has been passed, the question is now, why not the Philippines? The Philippines is really the choice we see to a higher and higher degree,” IWG Country Manager for the Philippines Lars Wittig said during a recent briefing.
The country’s GDP growth averaged 5.8% in the first nine months of 2024.
Mr. Wittig said more companies from sectors such as aviation and telecommunications are expected to utilize coworking spaces, as Republic Act No. 11659, or the Public Service Act, allows full foreign ownership in these sectors.
The creation of green lanes, which seeks to expedite the permit and licensing processes, is also favorable for coworking space providers, according to Mr. Wittig.
“We see that it’s approaching 1,000 companies, investors in the Philippines that are now on the so-called registered green lane… and many of those are our customers or are becoming our customers,” he told reporters.
He also anticipates that more start-ups and government offices will adopt coworking spaces to better meet their needs.
“If you are a start-up in the Philippines…, your primary resource is yourself, your time, idea, and skills, and you don’t want to tie your money up in real estate or office investment. You want it all to be focused on getting your first customer,” Mr. Wittig said in an interview with BusinessWorld.
Around 20% of IWG’s customers come from the start-up sector, Mr. Wittig said.
Government demand for office spaces was the highest in seven years, accounting for 11% or 122,000 square meters of total demand in 2024, according to Leechiu Property Consultants.
“Hopefully, I will soon be able to welcome many of these critical government offices that also want to not only be flexible with multiple locations for the sake of their employees and productivity, but also for the sake of the population they’re servicing,” Mr. Wittig added.
IWG earlier stated that it plans to have at least 50 open sites nationwide by the end of 2025, with each location having an average of 200 to 250 seats.
It is set to launch at least 17 new sites in locations such as Makati, Pampanga, Cavite, and Batangas this quarter. — Beatriz Marie D. Cruz
