Working from home still remote

02 Oct, 2020 - 00:10 0 Views
Working from home still remote Elisha Moyo

eBusiness Weekly

Business Writer

Working from remote locations is not a threat to the demand for office space, management at Zimbabwe Stock Exchange listed property management and development concern, First Mutual Properties (FMP) have said.

Instead, remote working from home will become supplementary, rather than a substitute of the office, FMP’s chairman Elisha Moyo said in a statement accompanying the group’s results. Moyo’s comments come amid suggestions that commercial real estate vacancy rates are likely to rise, particularly in the scenario when companies plan for employees to work from home.

A few companies here in Zimbabwe have announced that some of their workforce, might not return to the office and will continue to work from home post Covid-19. Telecoms giant, Econet, has in the past announced such plans.

“We expect that even after the lockdown is lifted, telecommuting will become our preferred way of doing business for those functions and activities that can be performed remotely,” said Econet in a trading update published end of May.

However, FMP does not believe the trend would be widespread in Zimbabwe.

“We expect resilient demand of corporate occupiers, as this client group may require larger space in order to embrace non-pharmaceutical Covid-19 protocols,” Moyo reckoned.

He is of the opinion that occupiers will adapt and maintain a presence at prime locations as part of their real estate strategy. In any case, most employers had already shrunk their office footprint. Office leases typically lock employers into five- to 10-year time leases. Because so many employers have a long-term lease, and because so many developments can happen over a period of even just a few years — let alone a decade — there really is no way to predict the future of commercial real estate, experts say.

Since many industries function better through collaboration, this could be another reason why people will return to physical workspaces, experts say.

Collaboration and culture are paramount to a company’s success, and that requires direct social interaction, according to Manny Ybarra, founder and president of Pillar Commercial, a full-service commercial real estate investment and operating company located in Dallas in the United States.

“The emerging long term trends indicate remote working from home will become supplementary, rather than a substitute or the office, as the offices will provide space for collaborations and corporate culture which is essential for business growth, risk management and talent development,” according FMP’s to Moyo.

Dubai based Realtor Simba James told this publication that office space is here for longer “because with a lot of organisations, physical interaction is vital”.

“In as much as meetings can be done virtually, the amount of meetings necessary for a decision to be made seemed to increase,” said James.

FMP is banking on the fact that Zimbabwe does not have widespread digital infrastructure to enable employees to work from home. According to the latest telecoms sector report, internet penetration in the country stood at 56,7 percent at the end of the second quarter of 2020.

“This coupled with inadequate digital, road and energy infrastructure, the negative effects of Covid-19 on the Zimbabwe real estate sector may not be as adverse compared to developed markets.

“The market dynamics are, thus unlikely to change for the traditional commercial real estate segment,” FMP believes.

James touched on this and said, major drawback to remote working would be connectivity issues because of data cost, power inconsistencies among other challenges.

“The downside of remote working is that cases of industrial espionage, data theft, intellectual property issues among other will be on the increase. Systems can easily be hacked because of insecure home networks.”

However, experts foresee many changes in the way that people return to physical workspaces. In a white paper, “Envisioning the New Normal,” United States-based law firm, Goodwin Law suggested the extensive changes it expects office buildings to make in order to reopen safely. 

Goodwin foresees buildings installing no-touch technology at many locations, such as at elevator panels.

Sensory technologies, including those that can monitor employees’ temperatures, are another possibility.

The law firm also expects HVAC systems to be adjusted to monitor air quality levels and to maximise the filtration and circulation of fresh air.

Goodwin expects landlords to equip tenants and employees with information on building and occupant safety and contact tracing, and, last but not least, to enhance cleaning protocols.

“But those who have office spaces will need to look at mixed usage as conventional usage of offices space will be different,” James said.

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