Regus has opened a new flexible working space in Adriatico Square, Malate, Manila. ABS-CBN News

MANILA – Coworking and flexible office spaces are expected to thrive after the COVID-19 pandemic disrupted work arrangements, industry player Regus said Friday.

At the launch of their new office space in Adriatico Square, Malate, Manila, Lars Wittig—Philippines Country Manager for Regus owner International Workplace Group-- said companies that let go of employees during the pandemic are realizing the importance of flexible workspaces.

"The big tenants with conventional leases, they learned the hard way, especially thanks to COVID, that there's no flexibility in a long-term lease for a certain amount of space," he said.

Wittig said many firms are saddled with 5 or 10-year leases for office spaces that don't meet their needs anymore. He noted that even before the pandemic, it was already difficult to predict what kind of office spaces will be needed years into the future.

"Then thanks to COVID, people really got aware, became aware of it," he added. 

The executive said that some companies--particularly those who signed leases before COVID which are now up for renewal--are now going for flexible working spaces. 

"Every time their service agreement is up for renewal, the likelihood of renewing--expanding or downsizing but renewing--is five percentage points higher today than pre-COVID," he noted. 

Long term leases have several disadvantages for a lot of companies, especially small and medium-scale businesses.

"And you don't like to pay for something that you don't need because you have too much space, and you also don't want to be forced out of something prematurely because that comes with fines and you've made a capital investment."

Wittig also said that even multinational companies rely on flexible working spaces these days, as more employees look for hybrid work arrangements. Younger employees also benefit from the mentorship they gain in co-working spaces, he noted.

"They knew that would help them attract and retain young talents," he added.

Work from home is most sought-after ‘benefit’: JobStreet

Filipinos healthier, happier and more productive in hybrid work setup, study says

The executive also noted that the flexible office space segment is growing “dramatically.”  While less than 5 percent of office spaces today are coworking or flexible, this figure is expected to rise to a "minimum 30 percent" in 10 years.

Hybrid job ads over ‘work-from-home’ seen as industry finds 'balance': Jobstreet

Regus currently has close to 30 locations around the country. Its office spaces are currently 84.4 percent occupied.

Wittig said entrepreneurs can get a virtual office at Regus Adriatico for as low as P4,600 a month. This means their firms can list Regus Adriatico as their business address where they can receive mail, have a virtual receptionist to answer their phone calls, and book meeting rooms wherever needed.

Regus said their office spaces can be rented monthly, quarterly, or annually. The maximum length of a short-term lease contract is 24 months, though this is renewable.

Currently, most of Regus’ clients in the Philippines are in the business process outsourcing, information technology, and startups.

Wittig also said they hope to attract micro, small and medium enterprises (MSMEs) in the Manila area to their Adriatico hub.

The 936-square meter hub has fully furnished and equipped private offices for all kinds of businesses.

Jerome Siy, president of Adriatico Consortium, said small businesses in Manila would benefit from Regus' competitive pricing.

"I think it's it's really the predictability. You know, when you go to a Regus you know what you're gonna get, right? You're gonna get the best facilities for an office at a very, very low price," he noted.

Filinvest Land, KMC ink deal for co-working facilities

FROM THE ARCHIVE: