Shared office provider KMC sees banner year

Rendered photo of KMC One Ayala’s coworking space

Flexible workspace provider KMC Solutions is opening several new projects in the coming months as the postpandemic hybrid office setup takes root, putting it on track to achieve record earnings for the year.

KMC is the country’s biggest developer of coworking spaces, or shared offices that are leased to multiple companies seeking a functional business venue while doing away with a permanent location or long-term rentals.

KMC said expansion was underway with the opening of a new coworking office at Ayala Tower 2 in Makati next month.

This will be followed by the opening of offices at Axis Tower 1 in Alabang and Lexmark Plaza 1 in Cebu within the fourth quarter of the year. KMC will end the year with a total portfolio of 121,487 square meters of floor area and 23,008 seats in 28 buildings across the country.

It said the One Ayala Tower 2 site would occupy six floors at the Philippine Economic Zone Authority (Peza)-accredited building.

The new offices will have a total floor area of 10,663 sqms and 2,133 seats, making the Ayala location KMC’s largest development for the year.

“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,” Gian Reyes, KMC vice president for marketing, said in a statement.

Shifting trends

KMC is riding on shifting trends as companies rethink the traditional office setup given the work-from-home trend.

The real estate advisory firm said the Philippine office segment had seen vacancies increase to 16.2 percent in the second quarter of 2022 from 15.4 percent in the previous quarter.

Despite the headwinds in the office market, KMC said it was on track to achieving record revenue in 2022, thanks to the growing adoption of a distributed workforce strategy among local companies.

One example is the country’s large business process outsourcing sector, which has embraced hybrid work that allows a mix of onsite and remote work.

Deconsolidation

The Interagency Fiscal Incentives Review Board earlier allowed covered firms to continue the hybrid work scheme until the end of the year without risking the loss of incentives.

“We no longer have to suffer hours in traffic to get to the office,” 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,” he added.

Despite traditional commercial spaces struggling with double-digit vacancy rates, KMC was bullish on the growth of its segment, Reyes explained.

“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.  •INQ•