LANDLORDS should take action now to prepare their properties for the “inevitable” return of workers to offices after the Omicron-driven surge in coronavirus disease 2019 (COVID-19) infections, according to Colliers.
“The Omicron variant should not hinder the property market’s recovery and the much-anticipated rebound of the Philippines’ office market. While the country battles a COVID-19 surge and new restrictions are imposed, landlords must now take action to prepare their properties for the eventual and inevitable return to work,” Maricris Sarino-Joson, director of Office Services – Landlord Representation at Colliers.
Landlords should start retrofitting their properties to make them safer for those returning to the office.
This can be done by introducing technology to curb the spread of viruses in the workplace, such as touch-less access for restrooms and elevators, hands-free door unlock mechanisms, and virtual guest passes.
Ms. Sarino-Joson noted that landlords can also help occupiers make changes to the design of spaces to accommodate social distancing rules and other health features.
“This may mean coming up with recommended designs which promote health and wellness of office workers and offering flexible fit-out periods for occupiers to implement these much-needed changes,” she added.
Converting spaces within buildings into fully fitted swing spaces or temporary office spaces is also ideal. “Existing tenants can use these spaces while they wait for their permanent office to be built or renovated,” Ms. Sarino-Joson said.
Colliers also noted that short-term leases are an ideal option for landlords to cover the cost of running and maintaining their properties amid the pandemic.
“Accepting short-term leases may… open doors to new and previously untapped clients, such as startups,” the diversified professional services and investment management firm said in an e-mailed statement on Jan. 28.
If landlords are able to find tenants willing to sign long-term leases, they should consider “sweetening deals,” Colliers added.
These include offering more favorable commercial terms and concessions, such as flexible lease terms, partial termination options, and delayed escalation.
“Show the prospective tenant that longer commitment in the property can mean bigger cost savings in the long term,” it said.
In December, Colliers said it was anticipating a rebound for the Philippines’ property market in 2022, owing to the increased vaccination rate and improved consumer and business confidence.
However, the emergence of the Omicron variant of COVID-19 has delayed many companies’ plans to return to the office. — Arjay L. Balinbin
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The article was originally published in Business World.
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