Filinvest REIT ramps up co-working space offering to meet demand
MANILA -Gotianun-led Filinvest REIT Corp. is close to signing 12,400 square meters of new office lease deals, that will include co-working spaces amid the pivot to the hybrid work set up, a stock exchange filing on Monday showed.
The real estate investment trust (REIT) arm of property giant Filinvest Land said it was diversifying revenue sources to “improve occupancy” as more businesses allow employees to work from home.
Co-working spaces allow several companies to share a common office, typically at lower lease rates.
“Cognizant of the changing office leasing landscape, [Filinvest REIT] is accelerating its co-working or flexible office space solutions in partnership with the largest provider in the Philippines to ably respond to the shifting customer demand brought about by hybrid work setups,” the company said in the filing.
“This will not only provide an additional source of revenues but it also balances the office leasing portfolio,” it added.
Filinvest REIT ended the first quarter with an average occupancy rate of 85 percent. It earlier noted a 2.73 percent drop in first quarter 2023 revenue to P800.8 million due to the drop in occupancy.
In it filing, the company said co-working facility operators and new business processing outsourcing tenants are expecting to take up about 7,000 sqm of new leases.
It is also in “advanced talks with two major BPO firms” looking to expand their current leases with the landlord.
“An American professional services firm headquartered in New York with about 100,000 employees globally is about to sign for additional two floors in one of FILRT’s 16 buildings in Northgate Cyberzone in Alabang,” Filinvest REIT said.
“Another existing tenant, a BPO company headquartered in Europe with over 50,000 employees globally, is expected to follow suit for an additional 2,300 square meters of office space,” it added.
Filinvest REIT announced the signing of another 10,300 sqm in new leases earlier this year.
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