Organised Facilities Management Industry to Benefit Most from Covid-19 Outbreak, Say Experts

The USD 15 billion-organised facilities management (FM) segment is likely to benefit the most from the outbreak of COVID-19 in the country as businesses resume operations and citizens begin to adjust to the new normal, industry experts said.

Maintenance costs, however, are likely to rise by 5-10 per cent to keep buildings safe, hygienic and coronavirus-free, they said.

Health and wellness have now become priorities in housing and commercial complexes -- a development that will immensely help the FM business.

In e-mail interactions with PTI, leading industry players said that their employees deployed to manage these facilities are acting as frontline warriors during this pandemic.

According to Knight Frank India, the organised FM market size is around USD 14.98 billion. The total area of management under organised FM is 3,000 million sq ft. Portfolio share with respect to office is around 65 per cent, retail 10 per cent and residential around 25 per cent.

With health and wellness becoming key focus areas, organisations may prefer to hire professional and trained facilities managers to drive such initiatives, said Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East and Africa, CBRE.

"As we move forward, the role of FM services providers can also become more strategic and long-term in nature with facets like hygiene and safety gaining importance for everyone," he said, adding that the organised FM business would witness growth and be required to hire trained people, deploy technology-based and customised solutions.

Currently, CBRE India provides services to more than 200 buildings and handles an area of over 300 million square feet.

"On the operating side, there could be added costs for things like enhanced cleaning, sanitisation, personal protective equipment (PPE) for personnel and screening services," Magazine said.

JLL India, which manages 420 million sq ft area, too said that maintenance cost would rise.

"FM is playing a leading role in ensuring the health, wellbeing and safety of people as well as in planning for the new, post-COVID-19 workplace of the future," said Sandeep Sethi, Managing Director, Corporate Solutions, West Asia, JLL.

The enhanced COVID-19 protocols encompass several measures related to health and safety for all facility management teams, security protocols, thermal scanners and deep sanitisation etc which could spike up maintenance costs, Sethi said.

Rajesh Sharma, Managing Director, IFM and asset Services, Cushman and Wakefield, said earlier the FM used to be primarily all about the general upkeep, security and maintenance of the facilities, but now the level of sanitisation, hygiene, ensuring a safe secure work environment, mitigating transmission/contamination of facilities moves centre stage.

"This would require clear cut standard operating procedures to be formulated that envisage every single possible threat and scenario and guidelines of handling the same," Sharma said.

C&W manages 150 million sq ft area in India.

"Although the extra measures will be required to provide a safe and secure work environment and there would be costs for PPE equipment other safety gear, sanitisation costs and the need to adhere to strict social distancing guidelines. However, this would not necessarily drive up the overall FM costs," he said.

Sathish Rajendren, Chief Operating Officer - Facilities & Asset Management Services, Knight Frank India, said: "At this crucial time, FM has emerged as a front-line warrior to ensure business continuity with the highest level of resilience from the very initial stage of the crisis."

Cost of FM would rise approximately by 6-9 per cent on account of wellness, customer care, automation, skilled manpower, hygiene and safety, PPEs and training," Rajendren said.

Knight Frank India manages over 255 million sq ft space.

Pradeep Lala - MD and CEO Embassy Services Pvt Ltd (ESPL) - said experienced IFM Service providers will be preferred. The use of technology tools and skilled manpower will bring about overall growth for the organised IFM players.

ESPL currently manages over 70 million sq. feet space across commercial, residential, co-working, industrial and retail sectors.

"In the course of time, the overall costs of facilities management will also increase," Lala said.

Rajesh Shetty, Managing Director, Real Estate Management Services at Colliers International India, said the importance of FM will further get enhanced with more seriousness accorded to the medical or the healthcare side of safety/precautionary aspects of all associated services.

Colliers International India manages around 130 Million sq ft space in the organised sector.

Shrinivas Rao, CEO-APAC, Vestian Global Workplace Services said facility management teams have been working relentlessly to keep home and work environments safe, he added.

Currently, we manage over 20 million sq ft. area across commercial, industrial and residential sectors, he said.

"We will see an increase in FM spends in the next four-six months. The focus will be on hygiene, adopting the latest technologies to ensure cleanliness and ensuring zero COVID-19 cases in their respective facilities.

"The investment will be on additional trained staff, procurement of the latest chemicals/disinfectants, equipment, tools, and technologies," he said.