COVID-19 OPERATOR RECOMMENDATIONS: RESPONSE AND READINESS
The experts at Colliers Internations in each region consulted with leading operators responding to the current situation to summarise recommendations for response and readiness in flexible workspace. Junny Lee, CEO of The Work Project, one of the largest premium operators in Singapore, a region affected early on by COVID-19, shared the following practical steps for operators to take:
- Clarify and define: a) government rules b) building rules c) your workspace ‘house rules’. There may be differences across the three. For example, entry restrictions may be stricter in your locations than government advisories on immigration.
- Define Standard Operating Procedures and designate an owner to communicate SOPs with members.
- Develop lists of essential supplies and perform weekly audits.
- Designate an owner to communicate and coordinate policy with landlords and local government.
- Prepare a communication strategy for the worst-case scenarios (i.e. onsite detection of cases).
- Prepare and communicate back-up options for members that may involve alternate locations.
Paul Salnikow, CEO of The Executive Centre, who has led the business for 25 years and has ensured operational resilience through SARS and the GFC offered the following advice to the sector: “We, as operators, act as a support system to our members and our focus, first and foremost, is to be safely open and operational in order to allow for business at our locations to continue. At TEC, we have 135+ locations in 32 cities across APAC and we have learnt to adapt our response across each market to ensure that we take the best care possible of both our members and our teams, depending on the local situation. Operators should follow the directives of global health bodies like WHO, maintain the highest of safety standards such as regular deep cleaning and sanitation of all locations, provide masks to all centre staff, as well as regularly check members’ and guests’ temperature before entry, and document whether they have recently visited any high-risk cities. The number one goal of TEC, and any operator, particularly at this challenging time, should be to ensure we do everything possible to help our members to continue to run their businesses in a healthy and safe environment.”
Additional risk-mitigation measures and recommendations for operators around the world:
- Sanitisation: Hourly cleaning of common areas. Especially high-risk areas like door handles, elevator buttons, kitchen areas, hot-desks and meeting areas.
- Protocol: Advanced communication to all visitors that they should not enter if they have symptoms or have recently visited high-risk cities.
- Shifts: Using split shift working patterns for operational teams.
- Catering: Cancellation of any buffet style catering that is offered in locations.
- Events: Cancellation of all events and gatherings above 20 people.
- Screening: Regular temperature checks for operational, members, and guests prior to entrance.
- Protection: Provisioning of surgical masks to operational teams. Introduction of mandatory wearing of masks by members and guests
OPERATIONAL MANAGEMENT TIPS FOR OPERATORS
In addition to the practical protocols outlined above, Colliers team recommends taking the following steps to manage coworking operators business through this challenging time:
- Learn from operators in APAC: Follow the actions of operators based in APAC who have now been dealing with COVID-19 for two months, particularly market leading operators with broad networks across China, Hong Kong and Singapore.
- Do cash flow contingency planning: Take the time to review the distribution of short and long-term contracts that make up the P&L of each of your locations. Model the various outcomes of low-medium-high risk scenarios. What if revenue drops by 20%? 50%? What if this endures for 3 months? 6 months? What is the tipping point for each impacted location?
- Manage your landlord/partner: If you don’t have strong reserves, approach your landlord now and manage their expectations. Communicate your situation and seek rent relief, if possible. As landlords in some APAC markets have offered rent relief to retailers at this time, there is precedent.
- Expect delays: Anticipate 60-90 day delays on both the demand and supply side of your business. Construction timelines could be extended. Existing clients in your pipeline may push pause as employees opt to work from home in the near-term.
- Leverage New Demand: Anticipate the closure of corporate offices (due to hyperlocal outbreaks) and expect occupiers searching for back-up flexible workspace solutions for their employees. Proactively market your workspace as a solution. Consider approaching your landlord partners, they may wish to leverage your portfolio to offer as a solution to their tenants.
- Explore New Revenue Streams: Consider upgrading the technology of your meeting & conference rooms and marketing these locations as remote conferencing zones. Do you have virtual memberships? Mail services? What else could you be selling? If you’re unsure, ask your members, they’ll tell you what they want.