Metro Manila (CNN Philippines) — Co-working spaces have expanded rapidly over the years as millennials dominate the Philippine workforce, a property analyst has said.
The growth is expected to continue as offices transform to meet the needs of start-ups, freelancers and remote workers.
Co-working spaces only began in the Philippines in 2011 but already they have grown by an average of 61% over the last four years, Colliers International Philippines said in a report on Wednesday.
These flexible workspaces should continue to increase by 10% annually until 2020.
Millennials make up about 44% of the Filipino working population, Colliers said. “Tech-savvy, creative, independent and driven by instant gratification,” they want to be in contemporary workspaces that reflect those traits, the report explained.
Co-working spaces are fully-furnished, ready-to-use office spaces, where users can rent anywhere from a seat to a private room for short periods of time.
Since start-ups have limited capital and small teams, Colliers said, they don’t need their own space or a long lease — especially the costs that come with it.
They are typically designed with large open spaces and interesting ambiance, located in areas reflective of the worker’s or company’s brand.
For the younger generation of workers and businesses, flexibility is the biggest draw of these spaces.
In Warehouse Eight, part-owner Kayla Dionisio said users can rent a private room or a single seat, with leases running for years or even a month.
This attracts start-ups and freelancers who will often work on a project basis and only need a base at certain times.
It also allows them to cut costs as they have limited working capital.
“A traditional office space requires a lot of investments. You need to invest in even small things you don’t think about like chairs, tables, setting up your wifi, setting up your telephone line,” Dionisio said.
Joshua Anilao can work remotely in his job as a game developer. But having a seat in Warehouse Eight allows him to meet his team when he needs to, so they don’t waste time sending and downloading large files.
“I can work at home, but sometimes home can be very distracting. You have the bed, the TV. I can also work in a cafe, but you can’t really leave your things lying around. You also end up spending a lot,” Anilao said.
A co-working space, he said, is more conducive for work — without the expenses and restrictions that come with a traditional office.
Co-working and collaborating
Still, co-working spaces are just starting, Colliers said. The average space in the Philippines is 500 square meters, far below the sites in Hong Kong spanning 3,000-4,000 square meters.
No single player dominates the market either, the research showed. “The uniqueness of each co-working space allows for others to compete and differentiate each site based on location, design, community and profile of tenants.”
For Penbrothers, part-owner Gabrielle Pratte said its their backend services that are setting the company apart.
Most of their clients are international start-ups. When they outsource their work to the Philippines, they don’t just need a place for their business, they also need to hire people and compensate them.
Pratte said, “We do recruitment, we do employment, we do payroll, benefits, all the backend work that our clients don’t want to do. And then on top of that, we add the co-working space.”
This has helped Penbrothers grow: since its start in 2014 with a 200-square meter space, it now has four sites with a total floor space of 1,700 square meters.
As co-working spaces focus on different segments of the market, Colliers said networking and collaboration are becoming an additional offering for tenants.
Both Warehouse Eight and Penbrothers use their sites for events on the side, allowing their clients to meet each other.
Dionisio said, “You can be a tech start-up looking for a graphic designer or a content writer. And you can be a content writer looking for a website or an app. Our clients can tap each other’s skill sets to help each other.”
For Nina Keizer, a community manager who’s just moved from the Netherlands, the work connections have been the major draw of renting space in Penbrothers.
“As a tech website, we have to know what’s happening in the industry. And the mixture of companies and people here helps us understand what our customers are usually looking for in our business.”
