The advancements in mobile technology and modern personal devices have changed the way people work. This enabled both employees and employers to work outside the confines of a traditional office space without compromising work product.
This development has led to the RT rise in popularity of the coworking space specially in Metro Manila, according to the Lobien Realty Group (LRG).
The millennial generation who comprise the bulk of the metropolitan sector, is the main reason behind the growth of coworking space. “Coworking provides an alternative work environment that is conducive for work without the rigidity of a traditional office,” LRG said in a press statement.
LRG observed the demand for coworking spaces in Metro Manila is increasing from freelancers, entrepreneurs, start-ups, small corporations, IT firms, BPOs, and even multinational corporations.
Moreover, the benefits of cost, increased productivity and convenience are some of the main reasons coworking has become a viable option for businesses.
LRG pointed out that cost is one of the premier reasons coworking has become popular. It has a strong appeal to firms looking for office space but need to conserve money. Aside from the lower costs, coworking spaces do not require long-term lease contracts; come equipped with fundamental amenities, furniture and equipment of modern offices.
Coworking spaces increases productivity, foster collaboration, cooperation, innovation, creativity and a spirit of community by exposing people to new business concepts and encouraging the exchange of ideas.
LRG mentioned that multinational corporations (MNCs) also consider convenience as a major factor why they are moving into the coworking space. Since a lot of MNCs use office spaces as temporary or swing spaces, going into coworking spaces gives them the flexibility to move in and out of an office space at short notice and avoid complicated contract negotiations, fit out work, and dealings with brokers, landlords, and property managers.
Right now, coworking spaces have become part of the growth landscape of the local real-estate industry. “In fact, both foreign and local flexible space operators, as well as real-estate developers have recognized this opportunity and are developing all types of coworking spaces around Metro Manila,” LRG said.
Makati and BGC are currently the preferred locations for establishing coworking sites and have the largest number of coworking spaces because of the heavy concentration of businesses in these areas. Currently, the five companies handling the biggest chunk of the country’s coworking spaces have, more or less, 33,000 seats on the market.
LRG, for one, is currently handling Work Studios located at the Infinity Tower in BGC. With a total of 172 seats, it also boasts of 122 private studios, three meeting rooms, 31 dedicated desks, 19 hot desks, 18 breakout areas, and 27 lounges. LRG predicts that the property markets in Quezon City, Ortigas and Alabang will benefit next.