KMC Solutions (KMC), the largest flexible space provider in the Philippines, is set to expand its local footprint further with the opening of new coworking offices at One Ayala Tower 2 in November 2022.
It will occupy a total of six floors at the PEZA-accredited building in Makati City, from the sixth to the eleventh floor. The new offices will have a total floor area of 10,663 sqm and 2,133 seats, making the Ayala location KMC’s largest development in 2022.
“Our One Ayala site will be a boon to investors who are looking to take advantage of the incentives afforded by PEZA and individual employees who want convenient access to transportation hubs and food and retail establishments,” said Gian Reyes, KMC’s VP for Marketing.
A number of developments are also scheduled to be opened in Q4 2022. Among these is a serviced office with 361 seats and 2,047 sqm of floor area at Axis Tower 1 in Alabang. In Cebu, a 1,301-seater coworking space occupying 7,251.2 sqm is being built at Lexmark Plaza 1, with a planned launch in December.
Earlier this year, the company completed a 1,150-sqm coworking office at Skyrise 4A with 205 seats.
KMC will end the year with a total portfolio of 121,487 sqm of floor area and 23,008 seats in 28 buildings across the country.
A Record Year
In August, Cushman & Wakefield reported that the Philippines’ office segment registered a vacancy rate of 16.2% 7 in Q2 2022 from 15.4% in the previous quarter.
Despite the headwinds in the office market, KMC said it is on track to achieving record revenue in 2022, thanks to the growing adoption of a distributed workforce strategy among local companies.
According to the firm, while sectors like BPOs have warmed up to work-from-home arrangements, a growing number of companies are gravitating towards a hybrid setup, which mixes onsite reporting and remote working.
“We no longer have to suffer hours in traffic to get to the office,” Mr. Reyes said. “Deconsolidation is the way to go. By having access to many coworking spaces, we enable flexibility and convenience while ensuring productivity and efficiency.”
Wired For Social
KMC is also banking on the social aspect of work, stating that the fact that people are “wired” to seek companionship has become an important point of consideration for companies when choosing a workspace.
The company’s One Ayala site was designed to further nurture this trend. Featuring both traditional workstations and shared spaces, the site supports diverse work styles and allows for more opportunities to collaborate with other tenants.
Mr. Reyes said that despite traditional commercial spaces struggling with double-digit vacancy rates, KMC is bullish on the growth of its segment as the market’s attitude towards work continues to evolve.
“With the changing needs of both employers and employees, we are confident that the market demand for flexible spaces will continue to grow,” he said.