Future Philippine CRE balances efficiency with experience

JLL's 2026 Future of Work Survey reveals how this transformation is unfolding across the Philippine market. It gathered responses from 100 Corporate Real Estate (CRE) decision-makers across 20 industries, conducted earlier this year. The survey explores how organisations are navigating AI transformation, productivity imperatives, risk management and portfolio strategy.

AI is reshaping how Philippine organisations think about their workforces. While 73% of CRE leaders anticipate expansion, how work gets done may be fundamentally changing. Around 65% expect AI to redesign and enhance human roles rather than eliminate them. This could shift performance metrics towards output quality, at 60%, over time-based assessment. Employment models may remain traditional, with 67% maintaining full-time structures over flexible arrangements. Yet concerns persist as 55% foresee possible talent scarcity as AI demands rapid reskilling and new skill combinations. Conversely, 45% of respondents see greater talent accessibility, as AI augmentation enables employees to perform higher-value tasks. These workforce shifts are driving fundamental changes in how organisations approach CRE strategy.

Figure 1: Philippine CRE leaders’ expectations on workforce

Source: JLL Research, 2026

When asked to identify CRE portfolio priorities at both building and workplace levels, clear strategic patterns emerge. Building-level strategies emphasise long-term value. Some 76% prioritise transformation over cost minimisation, while 75% favour strategic positioning over short-term flexibility. Advanced AI-driven optimisation, at 66%, and quality amenities, also at 66%, outweigh prime location, at 34%. These priorities reflect a flight-to-quality approach, which is the current trend in the market. Organisations target premium-grade, certified buildings to meet ESG commitments, technology infrastructure needs and competitive talent attraction requirements.

Within these strategically selected buildings, the focus shifts to experience at the workplace level. CRE leaders are redefining the workplace as an experience-driven asset class that directly supports organisational performance. Respondents prioritise collaborative variety over individual desks, hospitality-grade service over traditional management, customised local solutions over standardised experiences and innovative experimental approaches over proven ROI solutions. These preferences suggest actionable strategies. Organisations could continuously monitor space utilisation to inform ongoing adjustments, build portfolio flexibility through modular designs that adapt as work patterns evolve and create environments balancing AI-driven efficiency with technology that enhances work quality.

Figure 2: Factors affecting Philippine CRE investment decisions

Source: JLL Research, 2026

While investment priorities are clear, implementation faces substantial obstacles. Skills gaps in AI, analytics and emerging technologies dominate at 46%, followed by organisational silos limiting cross-functional integration at 36%. Regulatory complexity, at 31%, budget constraints, at 27%, long-term planning difficulties, at 27%, and limited change management expertise, at 27%, create additional friction. External pressures add to these challenges, with geopolitical instability and skilled labour shortages each affecting 24%.

Figure 3: Key barriers on Philippine CRE value creation

Source: JLL Research, 2026

The strategy is set, but execution remains the challenge. Philippine CRE leaders are aligning investment priorities around AI optimisation, collaborative spaces, hospitality service and customisation to integrate technology with human-centred design. While skills gaps and organisational silos present real challenges, targeted investments in expertise and collaboration can help CRE leaders bridge these divides. This approach enables them to create workplaces that don't choose between efficiency and experience but deliver both.