Philippines ranks among Asia-Pacific's most mature flexible office markets: Cushman & Wakefield

The Philippines is one of the most mature flexible office markets in Asia-Pacific, alongside India, Singapore and Malaysia, according to property consultancy Cushman & Wakefield. Demand for turnkey workspaces is rising as companies seek ready-to-use space amid economic uncertainty and higher fit-out

The Philippines ranks among the most mature flexible office markets in the Asia-Pacific region, according to property consultancy Cushman & Wakefield. The firm's report identifies the Philippines, along with India, Singapore and Malaysia, as the region's most developed flexible office markets based on factors including flexible workspace inventory, operator presence, average site size, landlord participation and management agreement adoption.

India leads the region, while the Philippines, Singapore and Malaysia are other mature markets driving sector growth. The consultancy said flexible office is now a core real estate strategy rather than an amenity, as occupiers and building owners navigate a less linear market.

Demand for flexible office space is being supported by changing workplace requirements and rising construction and fit-out costs, prompting occupiers to seek ready-to-use workspace that requires less upfront investment. Cushman & Wakefield noted that the Asia-Pacific region leads other regions in meeting room use, which accounted for 22.3 per cent of total bookings.

Globally, private office bookings increased to 9.9 per cent of total volume in the first half from 3.4 per cent a year earlier, while nondedicated desk bookings fell to 70.7 per cent. The consultancy also identified artificial intelligence companies as a source of demand for flexible office space because they often expand rapidly and require workspace that accommodates changing headcounts.

The Philippine market is attracting foreign operators and investors. Indian flexible workspace provider Table Space has proposed acquiring a 24.9 per cent stake in local operator KMC Solutions. Cushman & Wakefield said regional expansion plans and institutional investment are expected to support further growth in the flexible office sector.