By Alexandria Grace C. Magno
THE PHILIPPINES’ flexible workspace industry is growing rapidly as companies and workers 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 changed from a niche offering in the 1990s 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 in 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 end of 2019,” he added.
The sector’s early momentum came 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 can easily adjust in size depending on workforce levels.
Colliers said operators are now exploring new business models, moving away from traditional lease arrangements toward joint ventures or management contracts with landlords.
Metro Manila remains the main 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 is also 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 vacancy 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 vacancy easing to about 21%.
Natural disruptions have also influenced the market. Typhoons, floods and brownouts have encouraged firms to use flexible offices as backup sites for business continuity.
“These workspaces provide ready-to-use locations that can be activated during emergencies,” Colliers said. “Some flexible-workspace providers also offer workspace recovery plans, ensuring uninterrupted access to professional environments during natural disruptions.”
To stay competitive, operators are expanding their service offerings beyond desk rentals. Many now provide managed offices, wellness amenities, and employer of record services to help global firms enter the Philippine market and manage local compliance.
