Colliers urges firms to rethink use of office space
Employers should consider “reimagining and rethinking” the utilization of their office spaces now that more Filipinos prefer flexible spaces that can accommodate hybrid work arrangements after the pandemic, according to Colliers Philippines.
In its report based on a survey of Metro Manila-based respondents released on Wednesday, Colliers said 33 percent of property stakeholders wanted their offices to become collaborative spaces, while 26 percent preferred the incorporation of smart technologies.
At the same time, 23 percent want designated quiet zones and privacy pods, and 18 percent see using offices for employees’ group activities.
“Colliers believes that reimagining and rethinking the utilization of office space will be critical moving forward especially as more companies intend to entice a greater fraction of their employees to return to office,” the real estate investment management firm said.
“Reimagining workspaces is also important as more companies are planning to implement hybrid work arrangements,” it added.
Nearly 60 percent of respondents in Colliers’ survey said they were willing to occupy flexible workspaces that support hybrid work arrangements.
As of end-December, Metro Manila had 238,000 square meters of flexible workspace stock, accounting for 2 percent of the region’s total office stock.
This segment also had a vacancy rate of 17.5 percent by the end of last year. That represents an improvement from its record-high of 41 percent four years ago and supporting the changing preferences of companies.
According to Colliers, Makati Central Business District and Quezon City had the largest number of empty spaces.
“Colliers encourages flexible workspace operators to look at office buildings situated near residential communities as potential sites for their expansion,” the report said.
This comes after the Metro Manila office sector saw record vacancy rate in 2024 at 19.8 percent due mainly to the exit of Philippine offshore gaming operators.
Colliers sees this climbing to 22 percent this year on the back of an additional 655,880 square meters of new space coming up.
Kevin Jara, Colliers director for office spaces, earlier said developers had an opportunity to remain competitive and “enhance the value of their spaces to meet evolving workplace needs.”
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