The Executive Centre (TEC), Asia’s flexible workspace provider, said it has achieved “significant growth” in the Philippines and other Southeast Asian markets this year as demand for flexible offices continues to rise.
The company caters to more than 47,000 members in 33 cities across Asia-Pacific and the Middle East. Due to strong demand, TEC said it has added four new centers in Southeast Asia this year.
TEC said it will open a new center with 490 workstations from the 45th to 47th floors at Singapore Land Tower in January 2024 to meet the region’s requirements for flexible seating, meeting and event spaces.
“We have done exceptionally well particularly in Singapore with a city average occupancy of 95 percent in 2023, at the same time, we are seeing robust demand for our upcoming new center at Singapore Land Tower on Levels 45 to 47,” Yvonne Lim, TEC’s managing director of Southeast Asia, said.
“TEC’s expansions are largely driven by client’s requirement and the inter-city network within SEA continue to look strong with clients having multiple presence with TEC SEA network.”
Last January, Capital Square, a Grade A office building, opened in Singapore with 430 workstations. Pacific Century Place, which has 268 workstations, was launched in Jakarta last April.
Meanwhile, Friendship Tower was unveiled in Ho Chi Minh City last July. It has a total inventory of 125 workstations.
The latest addition is Ayala Triangle Gardens Tower 2 which opened just last month with 358 workstations.
The opening of these sites has added 1,181 workstations across the four key markets in the region this year, up 33 percent from 2022. TEC said these sites have seen high demand and occupancy rates of over 90 percent across multiple markets in the region this year.
As of September, TEC’s centers in Manila are leading its portfolio in terms of tenancy at 98 percent, followed by Singapore at 95 percent, Ho Chi Minh City at 91 percent, and Jakarta at 81 percent.
The Philippine office market is constantly driven by the information technology-business process management (IT-BPM), with Metro Manila as the top destination of choice by industry players worldwide, according to Leechiu Property Consultants.
At present, office stock nationwide stands at 18.1 million square meters, of which 82 percent are in Metro Manila. Of the figure, 81 percent or 14.6 million sq m have already been leased.
Vacancy rate is at 19 percent or 3.4 million sq m, with most of the available space in newly completed buildings. Bonifacio Global City and Makati City remain the preferred destination for office operations, as these areas recorded the lowest vacancy rates at 9 percent and 13 percent, respectively.