Serviced Offices and Coworking Spaces in Metro Manila, Philippines
Serviced office and coworking space solutions in the Philippines have become a viable alternative to conventional office space leasing. These office spaces are currently occupied by a large number of foreign and local companies, some of which include startup businesses, branch offices, expanding companies, and foreign companies in need of local representation.
With low-cost, fully-furnished workspaces in prime business locations, these flexible offices help companies scale easily and allocate more of their capital on their core business competencies.
Demand for flexible offices in the country has grown exponentially in the past few years, and top local office space providers are leasing larger spaces, exploring more locations, and expanding their local reach to accommodate and encourage more businesses to occupy their spaces.
Highlights of Serviced Office and Coworking Spaces in the Philippines
Serviced offices and coworking spaces are open 24/7 and located in prime business districts around the Philippines. They are usually easily accessible via public or private transportation.
Most of the top flexible office providers in the country locate their managed offices within Metro Manila, in locations such as Makati City, Bonifacio Global City (BGC), Manila City, Ortigas Center, Quezon City, and Mandaluyong City.
Serviced offices and coworking spaces, along with private rooms, are essential features of flexible offices. And they are complemented by fully-furnished workstations, state-of-the-art technologies, and cool amenities such as event spaces, game rooms, mini gyms, and sleeping areas.
Other notable features that flexible offices have are incubation and mentorship programs. These provide many businesses, especially startup and smaller businesses, the opportunity to partner with larger companies and create avenues for collaboration.
Accelerating demand for flexible offices in the Philippines has made it possible for office space providers to raise their monthly rental rates. Most providers charge based on a per square foot per month basis. Others provide flexible arrangements based on a per workstation or a per person pricing. But these rates, although higher compared to previous ones, are still relatively cheaper than those of conventional leased offices.
Pricing can vary per city and per region, depending on the local market conditions and number of vacancies. Vacancy rates in premium cities outside Metro Manila have cheaper rates compared to those located within the Metro.
In the second quarter of 2018 in Bonifacio Global City (BGC) alone, the average rental rate is at PhP952.1 per sq m/month. In the same quarter, increase in vacancies in Makati CBD has inspired an average rental rate of PhP1,084.4 per sq/month.
Why Choose Flexible Office Spaces Than Conventional Offices
Unlike traditional leased office spaces, flexible office spaces have more convenient leasing arrangements, plug-and-play options, and cheaper rental costs. Entrepreneurs seeking to set up operations in the Philippines have the freedom to hop into these spaces, choose their leasing arrangement, set up their gadgets and workstations, work, and leave or expand their occupied areas after their lease contract expires.
Conventional offices, on the other hand, are subject to restrictive leases. Some companies will find it hard to request for the allocation of additional office space within short notice, especially when they are seeking to expand their operations or in need of a workspace to accommodate their growing number of employees.
An additional concern is the capital required to be set aside for procuring office equipment, furnitures, and other materials to fill an office build-out.
These issues, however, are not likely to occur in a flexible office arrangement. Flexible office providers allow companies to request additional spaces within short notice because they are capable of easily adjusting to growing client requirements. They are also equipped with readily available workstations, hot/dedicated desks, and function rooms so companies need not shell out capital to source and obtain them.
According to Michael McCullough of top real estate services firm KMC MAG Group, “Serviced offices offer an immediate business location solution without having to spend all the time and money building out an office. You often get a great corporate address and the facilities you need to impress clients.”
However, American business consultant Gregory Kittelson of Manila-based business consulting firm Kittelson & Carpo Consulting states that a common practice for some small-and-medium enterprises (SMEs) is to engage with flexible office space providers to take advantage of low and flexible rental costs during the early stages of their business. They later transition to leasing conventional office spaces as their business mature and the number of their employees grow.
Mr. Kittelson adds that “Many of our smaller clients registering a business in the Philippines take advantage of flexible offices while ramping up on the initial hiring of employees. Once their company matures, they then leave the flexible office option and look for leased office space throughout Metro Manila to accommodate their growing business needs.”