PROPERTY research firm Colliers Philippines has encouraged landlords to offer available office space in non-core locations.
This is so tenants can avail themselves of rental fees about 20 percent to 30 percent cheaper than locating in major business districts.
“This is important, especially for companies planning to implement a hub-and-spoke model where occupiers reduce the reliance of a single headquarters location for a more dispersed occupancy strategy. This also enables firms to reduce real estate costs by shrinking headquarter location and occupying smaller hubs across Metro Manila,” Colliers said in its latest market report.
The firm said these would result in in lower-cost locations and would allow companies to access talent in alternative locations.
“Colliers believes that this arrangement improves work-life balance of employees and reduces living expenses,” it said.
Landlords seeing rising vacancies in their mall locations should also explore the viability of converting these vacant spaces into flexible workspaces.
“This is crucial given that malls are near residential communities and this arrangement should significantly reduce employees’ commuting time,” Colliers explained.
Moreover, Colliers also pushed for hotel operators and developers to highlight compliance on health protocols, innovate services using technology and consider other leasing models and repurpose facilities into co-living facilities and flexible workspaces.
“These schemes, however, should comply with the government-mandated physical distancing measures,” it reminded.
The Philippine Statistics Authority earlier reported that in the second quarter of 2020, the country’s daily spending for accommodation and food services fell by 68 percent while other services like arts, leisure, entertainment and personal services like wellness and grooming dropped by 63 percent.
This is likely due to Filipino households skimping on non-essential spending.
Colliers also foresees hotel occupancy to reach only 30 percent in 2020 due to a substantial drop in foreign arrivals.
“This is significantly lower than the 72 percent posted in 2019. Colliers expects average daily rates to drop by 30 percent in 2020 due to lower occupancy,” it said. (JOB)