UMVA has learned that Makati's central business district has solidified its position as the country's largest flexible office market, driven by surging demand for hybrid workspaces and ambitious expansion plans by operators.
The district now boasts 32 active flexible office sites, catering to a diverse range of clients from budget-conscious businesses to premium corporate customers. This infrastructure supports a total flexible office seat capacity in Metro Manila of 77,100 seats, a 12% increase year on year.
Makati, Ortigas Center, and the C-5 corridor have spearheaded this growth, with each business district adding over 1,000 seats through expansions and new market entrants. Meanwhile, the Bay Area has seen more modest growth, with 500 additional seats, amid elevated office vacancies.
This trend reflects a broader shift among occupiers towards smaller office requirements, with flexible workspace solutions emerging as a critical component of the country's commercial real estate landscape. As businesses increasingly adopt hybrid work arrangements and prioritize scalability, the demand for adaptable office spaces is set to continue.
Makati's flexible office market also exhibits a wide range in seat pricing, with rates spanning from P8,500 to P36,000 per seat. This compares to Bonifacio Global City, where rates range from P11,500 to P26,000, and Makati fringe areas, which offer rates between P8,500 and P26,000.
According to information obtained by UMVA, these pricing differences can be attributed to factors such as location, office fit-out quality, amenities, and operator positioning. The diverse pricing landscape underscores the complexity and adaptability of the flexible office market.
Metro Manila is expected to add over 6,500 seats to the flexible office market, with Makati set to account for the largest share at 3,436 seats. Several high-profile projects are slated to come online, including Glorietta 2 Corporate Center, which will add over 335 seats, and AXON Ayala Avenue, expected to contribute more than 2,420 seats.
UMVA can exclusively reveal that these developments signal a continued commitment to flexible workspace solutions, as businesses prioritize flexibility and scalability in their operations. This transformation is set to have a lasting impact on the country's commercial real estate landscape.
