Shared office provider KMC has a banner year

KMC coworking space

Rendered photo of KMC One Ayala coworking space

Flexible workspace provider KMC Solutions is opening several new projects in the coming months as the post-pandemic hybrid office setup takes hold, putting it on track to deliver record revenue for the year.

KMC is the nation’s largest developer of coworking or shared office spaces that are rented out to multiple companies looking for a functional place of business while eliminating permanent location or long-term rentals.

KMC said expansion is 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 during the fourth quarter of the year. KMC will end the year with a total portfolio of 121,487 square meters of floor space and 23,008 seats in 28 buildings across the country.

He said the One Ayala Tower 2 site will occupy six floors in the building accredited by the Philippine Economic Zone Authority (Peza).

The new offices will have a total area of ​​10,663 m² and 2,133 seats, making the Ayala KMC site the largest development of the year.

“Our One Ayala site will be a boon to investors looking to take advantage of the incentives offered by Peza and individual employees who want convenient access to transportation hubs and food and retail establishments,” said Gian Reyes, vice -president of KMC for marketing. in a report.

Changing trends

KMC is surfing on changing trends as businesses rethink the traditional office setup in light of the work-from-home trend.

The real estate consultancy said the office segment in the Philippines saw the vacancy rate rise to 16.2% in the second quarter of 2022 from 15.4% in the previous quarter.

Despite headwinds in the office market, KMC said it is on track to achieve record revenues in 2022, thanks to the growing adoption of a distributed workforce strategy among local businesses .

One example is the country’s large business process outsourcing industry, which has embraced hybrid working that allows for a combination of onsite and remote working.

Deconsolidation

The Interagency Fiscal Incentives Review Board previously allowed covered companies to continue the hybrid work program through the end of the year without risking losing their incentives.

“We no longer have to endure hours of 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 optimistic about its segment’s growth, Reyes explained.

“As the needs of employers and employees evolve, we are confident that market demand for flexible spaces will continue to grow,” he said. •INQ•

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