Property consultant Colliers sees a more revitalized office market in Metro Cebu after Typhoon Odette.
But this if landlords adapt to what tenants currently need: operational telecommunications services, Internet connectivity, air-conditioning, and amenities that ease the move-in process.
After the recent typhoon that devastated a big part of the Visayas, Colliers noted a rise in demand for fully-fitted plug- and- play office spaces.
“Several plug-and- play office facilities were immediately leased out in the aftermath of typhoon Odette as office locators raced to keep their operations running,” said Winston Luna, Colliers senior manager of Office Services—Cebu.
“We have observed that several IT-BPM (information technology-business process management) players have signed leases in such facilities in the short-term or until electricity providers reenergize their employees’ respective areas,” Luna said.
The IT-BPM industry, which employed about 200,000 workers in Cebu in 2021, has been implementing a work-from-home setup before the typhoon to protect their employees from the new coronavirus disease 2019 (COVID-19).
Colliers said this became more challenging after the typhoon left many residential communities heavily damaged and restoration of electricity, water and telecommunication lines likely to take months in some places.
“Since many IT-BPM locators generate revenue on a per-seat and per-minute basis, these companies carried out BCP (business continuity plans) to immediately provide employees with an alternative workspace, which resulted in high demand for fully fitted or plug-and-play spaces,” said Luna.
“Many occupiers searched for such options across Metro Cebu, while others even flew their employees to unaffected cities, including Metro Manila,” he added.
Kathlyn Atillo, Colliers assistant manager of Office Services-Cebu, said office property owners in Cebu should also focus in addressing tenants’ need for flexible lease terms, required area size/number of seats, and generator set capacity.
Atillo said not all landlords provide Internet connection and air conditioning, which are integral to tenants’ operations.
“Social distancing must also be implemented and observed in the workplaces to limit the spread of COVID-19, and most occupiers need to follow a one-meter or one-seat-apart setup in the workplace. This translates to a larger-sized office requirement, which means additional costs for many companies. All these challenges may cause delays in the implementation of BCPs,” she said.
“Lessors need to be flexible with their offered commercial terms and lease durations, especially during these extraordinary times. Flexible workspace providers should gauge interest for fitted spaces in the market and create more plug-and-play facilities that capture the evolving needs of occupiers,” Luna added.
Luna urged occupiers to revisit their BCPs and consider additional office spaces as BCP sites that can accommodate employees during disruptions. He said occupiers can reassess the readiness of their current office buildings in terms of their response capabilities during emergencies and technical specifications and look for quality buildings that can continuously operate for several days on generator alone.
