The future is flex: Flexible workspaces reshaping the office sector

Supply-driven uptick in vacancy rates

- By KEVIN JARA Director and Head of Office Services - Tenant Representation, Colliers Philippines and KATH TABURADA Senior Market Analyst, Colliers Philippines

The way we work has changed dramatically over the past decade, driven by technological advancements, shifting workforce dynamics, and evolving business needs.

Physical office spaces have adapted as well, with occupiers and enterprises increasingly seeking agile, flexible environments. This shift has fueled a surge in demand for flexible workspaces, transforming them from a niche concept into a mainstream office solution.

In our recently released white paper titled The Future is Flex: Insights from the Philippine Flexible Workspace Industry, we highlighted how the industry has transformed from its introduction in 1996 to its new phase of growth post-pandemic, showing that flexible workspaces are no longer just an alternative to traditional leases—they are now central to workplace strategies of businesses navigating an increasingly dynamic market.

THE RISE OF FLEXIBLE WORKSPACES

The growth of flexible workspace industry is closely tied to the country's transformation into a global outsourcing powerhouse and the rise of digital workers and entrepreneurs. Multinational business process outsourcing (BPO) firms were drawn to the country for its highly educated, English-speaking workforce and its advantageous time zone alignment with Western markets.