Rise of flexible workspace a challenge to classic landlords
by Catherine Talavera of Manila Times, 06-15-2016
The growing demand for flexible workspaces in Asia Pacific gives
rise to competing interests between operators and landlords, a
report by a real estate services firm showed.
"Flexible working operators are boosting demand, so over time
landlords may expect greater competition for office space,"
according to Colliers International.
The demand for flexible workspace in the region is driven by
certain factors such as the new generation of workers, attention to
technology and innovation, and the growing number of flexible
KMC Mag Group Associate Director for Office Leasing Rosario
Carbonell earlier noted the demand for flexible workspaces does not
pose a threat to developers that lease office spaces
Rather, it compliments their operations as they cater to clients
with smaller space requirements, Carbonell said.
Colliers also noted the advent of flexible workspace providers
may even benefit developers with high vacancy levels in office
It acknowledged the negative side in the rapid growth of
flexible workspaces in the region.
"We see a risk of over-expansion on a local scale by flexible
working space operators, which raises the possibility of a glut of
empty space appearing in certain areas, depressing rents and maybe
capital values," Colliers said.
"This risk applies particularly to flexible working space
operators focusing on the low end of the market, and less so to
companies occupying high-grade buildings in prime locations," it