FOLLOWING the massive destruction and disruption of Typhoon Odette (Rai) to properties and businesses in Cebu, property research firm Colliers Philippines has urged office tenants to revisit their business continuity plans (BCP) and consider additional office spaces as BCP sites that can accommodate employees during disruptions.
“Having a robust BCP has never been more vital towards ensuring the protection of an organization’s operations, assets and employees especially during times of great uncertainty and disruption,” Colliers Philippines said in its latest market report.
Besides strengthening their BCPs and looking for possible BCP sites, tenants are also encouraged to 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 operate even with the use of a generator alone for several days.
Colliers observed that several IT-BPM players have signed leases in “plug and play” facilities in the short term or until electricity providers reenergize their employees’ respective areas.
Cebu’s Information Technology-Business Process Management (IT-BPM) reportedly lost P5 billion in revenues in the first five days since Typhoon Odette.
The calamity, which hit some areas of the Visayas and Mindanao on Dec. 16, 2021, disrupted all types of businesses and utilities like power, water and communication lines.
“Then, like a thief in the night, Odette came and changed the entire landscape not only for Cib.O but for the entire province and region as a matter of fact. Combined with the still ongoing Covid-19 problem, the Odette devastation certainly are major setbacks for us that will take years for us to climb out of,” said Cebu IT-BPM Organization president Pert Cabataña.
While a BCP is intended to drive a business through temporary disruptions, there could be delays in its implementation.
Colliers said apart from high competition for fitted office spaces, there remain some challenges for certain occupiers whose “must-haves,” such as flexible lease terms, required area size/number of seats, and generator set capacity, are not yet being met.
The firm also added that not all landlords provide internet connection and air conditioning, which are integral to the tenants’ operations. Moreover, social distancing still needs to be observed and most occupiers need to follow a one-meter- or one-seat-apart setup in the workplace, which translates to a larger-sized office requirement and entails additional costs.
Because of these, Colliers urged office landlords and seat-leasing providers to be adaptable in providing what tenants require such as operational telecommunications services, internet connectivity, air-conditioning, and amenities that ease the move-in process.
It also urged lessors to be flexible with their offered commercial terms and lease durations during these extraordinary times. It also recommends for tenants to explore partnerships with flexible workspace providers for BCP packages where staff will immediately have a facility to work in.