Multinationals shifting to flexible workspaces

MANILA, Philippines — The Philippines is seeing accelerated demand for flexible workspace as most multinational companies are now shifting to a different work environment, a property consultancy firm said.

In a recent briefing, officials of Santos Knight Frank, said over two-thirds of multinational companies plan to increase their use of flexible co-working and collaborative space over the next three years.

SKF chairman Rick Santos said the trend presents an opportunity for local corporations to reap the benefits of an optimized workplace.

In its latest report on workspace occupier solutions Your Space, SKF said more than 110 co-working locations are now operating in Metro Manila.

“The industry has seen unprecedented growth over the last two years driven primarily by the need for flexibility,” Santos said.

Flexible workspaces are characterized by serviced working spaces that create a more collaborative working environment. These spaces are usually uniquely designed offices that offer additional amenities and provide a more comfortable working environment.

It also provides the freedom to expand and contract quickly in line with market conditions.

Such workspaces may include health and lifestyle amenities, educational facilities and sanctuary spaces.

William Beardmore-Gray, Knight Frank global head of occupier services and commercial agency, said office landlords in the Philippines “must spend more time providing excellent service to their clients.”

The Your Space report surveyed senior executives at 120 global companies which employ over 3.5 million people worldwide and occupy an estimated 22 million square meters of office space or more than four times the size of Metro Manila’s prime office market.

Sixty-nine percent of global corporates plan to increase their utilization  of co-working spaces and 80 percent expect to grow the amount of collaborative space they use over the next three years.

“Three in every four global corporates said personal productivity linked to well-being and happiness would increase as they shift toward a new flexible and collaborative model of occupancy that is more in keeping with today’s business structures and working styles,” the report said.

“While co-working and service office operators have grown rapidly over the past five years, driven largely by start-ups and the freelance economy, this is only the tip of the iceberg with latent demand from global companies set to emerge over the next three years,” Santos said.