Companies may tap flexible workspaces to lessen downtime amid disasters — Colliers

OFFICE developers and tenants may tap flexible workspaces as satellite hubs or temporary relocation sites to ensure business continuity during disasters, according to property consultancy firm Colliers Philippines.

“In light of recent natural calamities in Davao and Cebu, business continuity planning (BCP) has become more critical for occupiers,” Colliers Philippines said in its Third Quarter Metro Manila Office Report.

“Colliers encourages tenants to integrate flexible workspaces into their BCP frameworks, allowing them to quickly activate alternative sites during disruptions,” it added.

“Flexible offices can serve as satellite hubs, swing spaces, or temporary relocation sites, ensuring minimal downtime and operational resilience.”

Landlords and flexible workspace providers should consider offering BCP-ready packages that include short-term access, IT support, and disaster recovery services, Colliers also said.

As of end-September, flexible workspaces added 49,000 new seats across Metro Manila.

Fort Bonifacio accounted for the highest number of flexible workspace seats at 14,900, followed by Makati City (13,500 seats), Quezon City (8,700), Ortigas Center (7,000), Mandaluyong City (2,100), Alabang (1,800), and the Bay Area (1,000).

The vacancy rate for Metro Manila’s flexible workspaces slightly rose to 21% in the third quarter from 19.3% in the second quarter.

Overall, office vacancy in the Philippine capital is expected at 19.8% by the end of 2025, amid stronger take-up from newly completed buildings. As of end-September, net take-up reached 215,100 square meters (sq.m.).

The company also noted a decline in vacated spaces to 127,000 sq.m., the lowest quarterly level since the ban on Philippine Offshore Gaming Operators (POGOs) in mid-2024.

“Colliers believes that net absorption will likely pick up as the fourth quarter has historically been a strong period for office space take-up. By end-2025, we expect net take-up to reach 285,000 sq.m.,” it said.

In the third quarter, Metro Manila delivered 181,000 sq.m. of new office space, driven by the completion of offices in the Makati central business district (CBD), Ortigas CBD, Quezon City, and Taguig City. About 347,100 sq.m. of new office space was completed as of end-September.

New office supply is expected to reach 399,000 sq.m. by the end of the year, lower than Colliers’ previous forecast of 525,500 sq.m., due to construction delays.

Under better market conditions, Colliers expects the office market to return to a ‘normalized’ net take-up level of 500,000 sq.m., comparable to pre-pandemic and pre-POGO exodus levels.

“The slowdown in space surrenders, combined with sustained transaction activity, will likely support higher net take-up in the next two to three years.” — Beatriz Marie D. Cruz