Quezon City seen as lower-cost alternative to Makati offices

QUEZON CITY is emerging as a cost-effective alternative to Makati for companies seeking flexible office space, with seat rates ranging from P8,500 to P12,000 compared with as much as P36,000 in the Makati central business district, according to property consultancy Savills Philippines.

The price advantage comes as businesses continue to refine hybrid work arrangements and prioritize workplace flexibility, helping drive growth in the flexible office sector despite elevated vacancy levels in the traditional office market.

The national flexible office market expanded by 12% year on year in the first quarter, with total seat capacity reaching 77,100 from 67,700 a year earlier, Savills Philippines said in its Philippine Flexible Office Report released on June 8.

The growth reflects changing workplace preferences as companies increasingly seek scalable office solutions that balance cost efficiency, accessibility, and operational flexibility.

“Flexible workspaces are increasingly being integrated into mixed-use developments and premium office buildings, supporting both enterprise occupiers and growing businesses seeking scalable solutions,” Savills said.

“Looking ahead, the sector is expected to remain on a positive trajectory as businesses continue to refine their workplace strategies and prioritize environments that can evolve alongside changing operational needs. This positions the flexible office sector as a key driver in shaping the future of the Philippine office market.”

While major business districts such as Makati and the C5 Corridor recorded significant additions through expansions and new entrants, Quezon City strengthened its position through new developments and competitive pricing.

The recent opening of the 17-storey One Felicity Center in Barangay Holy Spirit added about 270 seats to the district’s flexible workspace inventory, bringing the number of active sites in the submarket to around 11.

Quezon City’s pricing remains among the most competitive in Metro Manila. Its maximum rate of P24,500 per seat remains below the upper-end rates in prime office districts such as the Makati Fringe and Bonifacio Global City, where rates can reach P26,000.

The district is also among the most affordable flexible office markets in Metro Manila. Seat rates range from P8,500 to P12,000, compared with P12,000 to P19,000 along the C5 Corridor and P12,000 to P18,800 in Ortigas Center.

According to Savills, the affordability of flexible office space in Quezon City makes it particularly attractive to cost-conscious occupiers and growing businesses seeking future-ready work environments without the burden of long-term lease commitments.

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The property consultancy also noted that the large volume of vacant traditional office space across Metro Manila presents an opportunity for operators to convert underutilized inventory into flexible workspace formats.

The sector’s growth outlook remains supported by an additional 7,000 seats expected to be delivered across Metro Manila and key regional markets such as Cebu, Davao, Iloilo, and Clark.

“Major operators, including KMC Solutions, IWG Group, and Work.Able, are actively pursuing expansion within established business districts,” Savills said.

As businesses continue to optimize workplace footprints and adopt hybrid work models, lower-cost office locations such as Quezon City are likely to benefit from growing demand for flexible workspace solutions, it noted. — Juliana Chloe A. Gonzales