Flex office segment emerging as defensive play as traditional office leases hit 5-year low — CBRE

Developers are reconfiguring their portfolios to increase flexible office offerings after traditional office leasing fell to a five-year low during the second quarter, according to real estate consultancy CBRE Philippines as reported by BusinessWorld.

With more than 3,400 seats in upcoming supply, developers are turning to flex spaces as defensive plays while overall office stock languishes with vacancies. The shift reflects a broader trend as companies seek shorter-term, more adaptable lease arrangements amid economic uncertainty.

CBRE noted that the traditional office market continues to face headwinds from remote work and cost-cutting measures, making flexible spaces an increasingly attractive option for both landlords and tenants. The upcoming supply of flex seats is expected to partially offset the decline in conventional leasing activity.