By Cathy Rose A. Garcia, Managing Editor
THE continued adoption of hybrid work schemes is expected to drive the growth of flexible workspaces in the Philippines, according to WeWork.
“It is good to see our locations in Manila buzzing with members and activities. Hybrid has been a key driver of workplace adoption for our members in the Philippines and Southeast Asia,” Dylan Burke, WeWork portfolio director for rest of Southeast Asia, said in an e-mail interview with BusinessWorld.
“Most of them are back in the office three to five days weekly, and working from home or sometimes in another WeWork location for the rest of the week.”
He noted companies are now prioritizing collaboration as the primary purpose of the office, instead of simply as a place to work.
“Since employees are only back for some days in the office, they would prioritize in-person collaborations and meetings, to make their trip back to the office ‘commute worthy’,” Mr. Burke said.
WeWork Philippines has seen bookings for large meeting rooms surge 4.7 times year on year in the first quarter.
As hybrid work schemes continue, many companies are now evaluating their workplace strategies. Some have realized they no longer need full floors or secure long-term leases in traditional spaces.
“From small businesses to large enterprises, companies want the ability to grow or scale their space as needed with the option of short- or long-term leases that can optimize their real estate costs. Now more than ever, companies would not want to commit to 10-15 year lease agreements; especially in the face of inflation and operational pressures,” Mr. Burke said.
This is where WeWork comes in, as it can provide companies with various solutions and flexible financial commitments.
Aside from private offices and full floors, WeWork now offers solutions to address companies’ hybrid needs.
All Access is a monthly membership that allows members to work from any WeWork location in the world, while On Demand is a “pay-as-you-go” solution to access any WeWork workspace or meeting room when needed. It also offers a workplace management software for employees.
Mr. Burke said that in the first quarter, WeWork has seen a 77.5% jump in its All Access bookings from the fourth quarter of 2022.
SOUTHEAST ASIAMr. Burke said Southeast Asia, particularly the Philippines, will continue to be a key driver of WeWork’s growth.
“Across the region, our revenue and occupancy continue to gain positive momentum and I am focused on how we can continue to sustain this; and also be a strategic partner to companies expanding into and within the region,” he said.
As of the first quarter, WeWork reported its occupancy rate in Asia-Pacific (Southeast Asia/South Korea/Australia) stood at 83%, the highest globally (excluding franchise markets).
“WeWork Phillippines’ occupancy has been consistently in the higher range throughout the pandemic,” Mr. Burke said.
WeWork has 30 locations in Southeast Asia, including four in the Philippines — RCBC Plaza, Milestone at 5th Avenue, Menarco Tower, and Uptown Bonifacio Tower Three.
“Manila is a fast-evolving economy that attracts business activities and leaders from all over the world and I see the central business district specifically Bonifacio Global City (BGC) and Makati, which is where WeWork is based, continues to be an emphasis for business interactions and engagements,” Mr. Burke said.
WeWork Philippines members include, large multinational companies (MNC), small and medium enterprises (SMEs), startups and individual entrepreneurs.
“Individuals want access to diverse business communities, networking opportunities, and the flexibility to work from any location globally. With SMEs that are on a fast track to growth and exploring multiple market expansions, they lean on our global portfolio. As for MNCs, their focus is to optimize operations which also means they have to be savvy and strategic with their workplace commitment,” Mr. Burke said.