Flexible workspaces seen crucial to post-pandemic property tactics

CEBU, Philippines — A report by Colliers Philippines bared that flexible workspaces are likely to play a crucial role in post-Covid real estate diversification strategies of companies.

Colliers said Cebu is an attractive location for these kinds of real estate developments due to the availability of new and high-quality office spaces.

“Cebu also continues to attract a mix of BPO [Business Process Outsourcing] and traditional tenants, potential occupants of flexible workspaces in the city,” Colliers said in the same report.

The company recommends that landlords should explore the viability of launching their flexible workspace brands while tenants should be on the lookout for available flexible workspaces and take advantage of rental corrections in the market.

Likewise, Colliers encourages tenants still on a wait-and-see and with short-term lease plans to consider flexible workspaces.

“In our view, landlords should explore partnerships with flexible workspace operators or launch their brands. Landlords in key metropolitan areas such as Clark, Cebu, Davao, and Iloilo should also capture flexible workspace take-up.  Cebu will be an attractive location for flexible workspaces as BPO players continue to expand. Flexible workspaces will also be attractive for traditional occupants especially those that are gauging expansion plans in the near to medium term,” experts at Colliers indicated in the report.

Tenants should also revisit their business continuity plans and consider integrating flexible workspaces into their hybrid work arrangements. Flexible workspace operators may consider occupying space in transit-oriented retail projects and partner with in-mall retailers to add value to their services and lure more consumers to take up flexible workspaces.

“Because of the new ways of working, it is now crucial for building owners to have a flexible workspace provider in their buildings to capture new office space requirements. Given all the uncertainties, flexibility will be the name of the game,” noted Maricris Sarino-Joson Director, Office Services – Landlord Representation.

“As hybrid work gains traction at the height of the Covid-19 pandemic, flexible work has become the focus of multinational companies. Occupiers should revisit their short- and long-term growth projections to properly assess their real estate needs and take advantage of the flexible work solutions as an interim alternative,” explained Patricia Cruz Associate Director, of Office Services – Tenant Representation.

Collier projects take up flexible workspaces to be driven by traditional occupiers engaged in construction, architecture, logistics, and financial technology (fintech) as well as startup companies.

Meanwhile, outsourcing firms with immediate office space requirements should also consider plug-and-play or fitted offices. Flexible workspaces are popular among companies weighing office space expansion plans in the near term. Colliers believes that regardless of industry, flexible workspaces are a feasible alternative for companies seeking short-term leases and looking to rightsize operations.

Colliers Philippines believes that flexible workspaces can play a pivotal role in various tenants’ real estate strategies, stating that “in our view, occupants should consider implementing a diversified office space portfolio, i.e. while they rationalize traditional office space occupied, they should also look at occupying flexible workspaces especially those near the residential areas of their employees. This setup can provide flexibility to employees, especially for occupants that implement hybrid work schemes. Employees also benefit from reduced commute time to their workplaces.”