Flexible workspaces may sustain growth in 2026

The Philippines' flexible workspace market is set to expand further this year as global capability centers (GCC) and multinationals increase their presence in key business districts and regional hubs, analysts said.

“We expect continued growth in the flexible workspace sector, supported by both local and global trends,” Mikko Barranda, director for commercial leasing at Leechiu Property Consultants, said in an e-mailed reply to questions. “Global economic uncertainty and cost optimization requirements will reinforce demand further to look for adaptable solutions.”

GCCs, or in-house service hubs of multinational companies, continue to see the Philippines as a key location for talent and cost efficiency.

“For many of these companies, flexible workspaces provide a low-risk entry point before committing to larger, long-term offices,” Mr. Barranda said.

He added that flexible workspaces — offering hot desks, pods, meeting rooms and lounges — have become a staple in corporate real-estate strategies. These models attract project-based teams and market entrants looking to scale operations amid uncertain global conditions and high leasing costs.

Local coworking operator GreatWork Global Workspaces plans to double its footprint by 2026 to capture rising demand.

“We have a strong pipeline of local and international companies requesting GreatWork locations in areas where they are scaling operations and hiring talent,” Ruth Coyoca, assistant vice-president for sales and business development at GreatWork Global Workspaces, said.

GreatWork is in talks with more than 20 landlords across Metro Manila, Clark, Cebu and select regional business districts. Its offices offer coworking areas, private suites and virtual office services with designs featuring natural light, ergonomic layouts and premium finishes.

In 2025, the company recorded about 90% occupancy in its Quezon City and Mandaluyong branches.

About 60% of its tenants are foreign companies — including business process outsourcing and Fortune 500 companies — while 40% are Filipino-led enterprises and government clients.

“This mix provides resilience across economic cycles and reinforces our positioning as a premium, enterprise-ready coworking operator,” Ms. Coyoca said.

Source: Business World

U.S. Offshoring Bill and Its Impact on the Philippine IT-BPM Sector

A new proposal in the U.S. Congress, the Keep Call Centers in America Act, has once again stirred discussion about the future of offshoring and its possible impact on the Philippines’ Information Technology and Business Process Management (IT-BPM) industry.

If enacted, the bill would require call center agents to disclose their location at the start of each customer call and give U.S. consumers the option to speak with an agent based in the United States. It would also require U.S. companies to notify the government 120 days before moving operations offshore. Firms that fail to comply, particularly those receiving government contracts or tax incentives, could face penalties or even blacklisting.

For the Philippines, where nearly 1.9 million Filipinos are employed in the IT-BPM sector and where the industry accounts for about 45% of total office leasing activity, the proposal naturally draws attention.

Temporary Concern, Long-Term Strength

While the measure has raised some concern, similar proposals have been introduced in the past without advancing into law. The Philippine IT-BPM sector has consistently proven resilient in the face of shifting global policies, supported by strong fundamentals and adaptability.

Our data shows that IT-BPM firms remain the primary driver of office demand across the country. Regional hubs such as Cebu, Clark, and Davao continue to attract expansion from outsourcing companies drawn to the deep talent pool, improving infrastructure, and increasing availability of Grade A office spaces suited for outsourcing operations.

Even if some U.S. clients take a more cautious approach, the Philippines retains a clear competitive advantage. Based on U.S. labor data, a U.S.-based call center agent typically costs around $30–$40 per hour, including wages, benefits, and training. By comparison, a Philippine-based agent costs about $12–$15 per hour all-in, a significant difference that continues to make the country a cost-effective and reliable choice.

Why the Industry Remains Resilient

Beyond cost savings, global firms value the Philippines’ skilled, English-proficient workforce, business-friendly environment, and modern, BPO-ready office spaces that meet evolving operational and sustainability standards.

In Cebu, for example, office absorption remains healthy due to the city’s strong IT-BPM presence and access to a consistent talent pipeline from across the Visayas. This ongoing activity reflects how outsourcing firms continue to grow in the Philippines even amid global uncertainty.

Outlook: A Continued Bright Spot for the Economy

Although the Keep Call Centers in America Act may create short-term uncertainty, many industry observers believe it is unlikely to become law given the high labor costs and persistent worker shortages in the United States.

Looking ahead, the IT-BPM sector is expected to remain one of the strongest pillars of employment, office demand, and economic growth in the Philippines. With competitive costs, proven expertise, and continued investor confidence, the country is well-positioned to stay a top global destination for outsourcing in the years ahead.

Source: Leechiu

Philippines is one of the most hybrid-work friendly markets in Asia-Pacific

The Philippine office sector is one of most hybrid work-friendly markets in the Asia-Pacific region, but some firms still face sustainability challenges, according to property consultancy firm Colliers Philippines.

In a survey conducted under its 2026 Asia Pacific Workplace Insights Report, Colliers said that 82% of Philippine organizations are adopting hybrid work models, with 32% looking to invest in workplace upgrades next year.

“Occupiers in the Philippines are moving beyond cost-efficiency to create workplaces that inspire, connect, and deliver lasting value,” Kevin Jara, head and director of office services — tenant representation at Colliers Philippines, said in a statement.

However, 26% of respondents from the Philippines said they are unsure about their sustainability approach, Colliers noted, citing the need for clearer strategies and landlord collaboration.

“While ESG (environmental, social, and governance) priorities remain a work in progress, today’s momentum signals meaningful progress. Indeed, the role of the workplace has evolved from a functional necessity to a strategic driver of culture, collaboration, and productivity,” Mr. Jara said.

Firms that align ESG principles with their workplace strategy could help boost company branding, Colliers said.

Key sustainability practices that offices should adopt include green building design, inclusive layouts, and transparency, it added.

Despite the growing shift to hybrid work, many organizations in the Philippines, Australia, Japan, Singapore, and New Zealand are still enforcing attendance mandates, Colliers noted.

“Attendance mandates remain common, highlighting the region’s ‘hybrid paradox,’ where flexibility exists on paper but traditional structures persist,” Colliers said.

It also noted that assigned seating is still prevalent in many Philippine workplaces, signaling limited agility in office setups.

“Even in flexible offices, early arrivals often claim the same seat. At the same time, some senior leaders are growing quite resistant to hybrid, implying concerns about productivity, collaboration, and culture,” Chris Archibold, Colliers managing director for Offices in Southeast Asia, said in the report.

“Hybrid isn’t a quick fix, it requires clarity, honesty and a deep understanding, of what works for your people, your business, and your market,” he added.

The report also noted that 43% Philippine organizations have already integrated multi-generational needs into their workplace strategies.

“Overall, the Philippines shows strong progress in hybrid adoption and inclusivity, coupled with planned investments. Closing gaps in sustainability and aligning flexibility with culture will be critical for Philippine-based organizations who seek to attract talent and drive long-term performance,” Colliers said.

Across the Asia-Pacific, companies’ work strategies focus on improving productivity (9.43%), talent attraction/retention (8.85%), improving employee experience or well-being (8.48%), and better location (8.11%).

About 74% of firms in the region said that their offices are at least half full on a typical work day, while 45% said their midweek occupancy exceeds 75%, Colliers said. 

For design preferences, Asia-Pacific respondents also noted that they prefer workplaces with natural lighting (17%), biophilic features and green walls (15%), ambient temperature (14%), and more collaboration spaces (13%).

About 20% of the region’s firms use artificial intelligence (AI)-driven tools to enhance employee experience, while 20% have no AI integration plans, Colliers said.

“AI has the potential to make workplaces more responsive, adjusting layouts in real-time, tailoring sensory inputs and tracking usage to better align with how people work,” it said in the report.

Colliers surveyed more than 800 corporate occupiers across 11 Asia-Pacific markets, including the Philippines, China, Australia, India, Indonesia, Japan, New Zealand, Singapore, Taiwan, Hong Kong, and South Korea.

Source: Business World