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Santos-Knight-Frank

Upward trend seen for co-working spaces

Property consultancy firm Santos Knight Frank, formerly CBRE Philippines, sees a growing demand for co-working spaces in the country. 

Santos Knight Frank Chairman and CEO Rick Santos said in a press conference Thursday that the non-traditional, shared working spaces were sought after by young professionals and entrepreneurs.

Santos mentioned that demand for co-working spaces will support the overall growth of the office space market.

“Co-working spaces take away worries concerning internet access, electricity bills and office maintenance,” the executive noted.

The firm’s tenant representation and office agency director Morgan McGilvary has cited reasons for increasing demand on co-working space, like it provides a more professional alternative for coffee shops for meeting; flexible in lease term length; flexible for scaling up and scaling down; and inclusive pricing, among others.

McGilvary cited the co-working spaces in central business districts (CBDs) of Makati, Alabang, Quezon City, and Pasay.

He said annual growth rate of co-working space was at 22 percent.

As of October 2016, there were 11,300 co-working spaces globally with 835,000 worldwide members.

By end of this year, about 2,500 working spaces are expected to be added in the market.

Projected additional members for the next few years are seen at 345,000.

Meanwhile, overall office space in Metro Manila has vacancy rate 1.57 percent in first quarter of 2017.

New stock of office space in Q1 2017 reached 74,605.52 square meters.

Average lease rate of offices spaces in Metro Manila is at P900.32 per sqm per month.

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