Makati still top flexible office hub

MAKATI’S central business district (CBD) remained the country’s biggest flexible office market in the first quarter, supported by rising demand for hybrid workspaces and expansion plans by operators, according to property consultancy firm Savills Philippines.

“With 32 active sites spread across the district, the CBD accommodates diverse occupier segments from cost-conscious users to premium corporate clients,” Savills Philippines said in a market report.

Total flexible office seat capacity in Metro Manila rose 12% year on year to 77,100 seats.

Makati, Ortigas Center and the C-5 corridor led growth, with each business district adding more than 1,000 seats through expansions and market entries.

The Bay Area posted more modest growth with 500 more seats amid elevated office vacancies.

“This growth is consistent with the shift among occupiers in the area toward smaller office requirements,” the consultancy said.

Makati also posted the widest range in seat pricing, with rates ranging from P8,500 to P36,000 per seat.

Bonifacio Global City followed with rates ranging from P11,500 to P26,000, while Makati fringe areas posted rates of P8,500 to P26,000.

Savills attributed the pricing differences to location, office fit-out quality, amenities and operator positioning.

The consultancy said Metro Manila is expected to add more than 6,500 seats to the flexible office market, with Makati accounting for the biggest share at 3,436 seats.

Upcoming projects in Makati include Glorietta 2 Corporate Center, which will add more than 335 seats, and AXON Ayala Avenue, which is expected to contribute more than 2,420 seats.

“As businesses increasingly adopt hybrid work arrangements and prioritize scalability, flexible workspace solutions have emerged as a critical component of the country’s commercial real estate landscape,” Savills Philippines said. — Juliana Chloe A. Gonzales