Colliers PH: Majority of firms adopt 100% return-to-office setup in ‘new normal’ reset

The new normal is shifting once again, as 54 percent of companies have adopted a full return-to-office (RTO) setup, adding to signs of a retreat from remote work, based on Colliers’ fourth quarter 2024 survey results.

This represents a significant departure from pandemic-era norms, with only 5 percent of firms sticking to a full work-from-home setup, and 41 percent still operating in hybrid mode,

“This only highlights the crucial role a well-designed physical office plays as more companies entice their workers to RTO,” Colliers Philippines noted in the survey. 

"As previously highlighted, a reimagined workspace is a must,” it added. 

As demand for office space grows, companies are looking beyond traditional central business districts.  

Joey Bondoc

Colliers Philippines director for research

The so-called Makati fringe and Ortigas fringe areas emerged as the top expansion targets, each attracting 33 percent of responses, while Quezon City followed closely at 29 percent. 

These locations, which offer more accessible lease terms, offer a balance of accessibility and cost. Vacancy in Makati Fringe is the highest at 35.9 percent, while Quezon City combines lower rental rates with a tighter 22.8 percent vacancy.

Despite the RTO push, flexible workspaces remain relevant: 58 percent of hybrid adopters plan to lease co-working spaces in the next year. 

With flexible workspace vacancy now down to 17.5 percent in Metro Manila, landlords have a chance to repurpose underutilized buildings near residential areas to meet evolving tenant demand, Colliers noted.