Flexible workspaces surge in Philippines as office leasing slows in 9M 2026
Colliers Philippines reports that conventional office leasing in Metro Manila fell 26% year on year in the first nine months of 2026, while flexible workspace net take-up jumped 185% to 7,600 seats. The shift reflects occupiers favouring agility and cost predictability amid geopolitical and economic
Flexible workspaces emerged as the bright spot in the Philippines office market in the first nine months of 2026 (9M 2026), even as conventional leasing slowed sharply, according to a report by Colliers Philippines. Metro Manila recorded only 500,000 sq.m. of office transactions in 9M 2026, down 26 per cent from 673,000 sq.m. a year earlier, while provincial leasing dropped 50 per cent year on year to 105,000 sq.m.
By contrast, the flexible workspace sector posted net take-up of 7,600 seats in 9M 2026, up 185 per cent from 2,665 seats in the same period of 2025. Flex providers also recorded the strongest transaction growth among occupier industries, with leasing rising 48 per cent year on year to about 64,000 sq.m. Nine new centres added approximately 2,325 seats in the third quarter, bringing total inventory to about 60,400 seats, with another 2,700 seats expected in the fourth quarter. Fort Bonifacio and Makati central business district accounted for 57 per cent of flex expansion activity.
Colliers attributed the shift to prolonged geopolitical and economic uncertainty, high interest rates and elevated inflation, which have made many firms defer real estate decisions. Occupiers are choosing flexible arrangements over long-term leases to hedge risk, attracted by an operating expense (OPEX) model that replaces large capital outlay with predictable monthly costs. Overall Metro Manila vacancy rose to 19.5 per cent in Q3 2026, following the completion of new office buildings in Makati Fringe and Arca South.
Among occupier segments, the information technology and business process management (IT-BPM) industry posted 197,000 sq.m. of leasing in 9M 2026, down 18 per cent year on year. Colliers noted that the industry is pivoting from traditional headcount expansion toward higher-value capabilities and AI-enabled talent, and that the Philippines hosts only about 200 global capability centres (GCCs) compared with more than 2,100 in India, signalling substantial runway for growth.
Colliers has revised its full-year net demand forecast for Metro Manila to 165,000 sq.m., just over half of its initial forecast of 300,000 sq.m., with soft demand likely to persist through year-end. Only about 141,000 sq.m. of new supply is expected in Q4. Kevin Jara, director and head of tenant representation at Colliers Philippines, said the slowdown presents opportunities for occupiers and landlords prepared to act, with landlords repricing vacant space and newer supply widening choices.
