regional conference western cape south africa property … · 2019. 4. 25. · western cape...
TRANSCRIPT
Property Management
Versus Facilities
Management
Speaker: Edward Hector11 October 2018
Regional Conference
Western Cape – South Africa
One of South Africa’s Biggest Challenges
Inequality
Inequality … From World Class Infrastructure
Inequality …. To Serious Challenges
We Are Not Alone
Context – The Built Environment
Banks
(ABSA
1300 branches)
Public Works
93 000 buildings
R 117b
26
Public Universities
Property Management Companies
Retail
Listed Funds
R720b
Context – The Built Environment
Interrelationship
Property
Owners
Asset Manager(Strategic)
Facilities
Management(operations)
Property
Manager(Administration)
Source: Kleynhans, B. 393:2016
35,0%
33,9%
2016 2017
37,8%
36,7%
2016 2017
32,9%
31,5%
2016 2017
32,1%
30,8%
2016 2017
Property Management - Data
Operating Cost as a % of Gross IncomeAll Property & per sector
2000-2017
% o
f To
tal R
an
d
pe
r s
qu
are
me
ter
40.0%
35.0%
30.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Latest Period compared to previous
All Property Retail Office Industrial
36.7%
33.9%
31.5%
30.8%
RetailOfficeIndustrialAll Property
Source: MSCI Real Estate
Property Management - Data
Source: MSCI Real estate
Operating Costs; % of TotalOperating Cost category trend; Rand per sqm
19,68
50,69
20
05
20
17
20
16
20
15
20
14
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
Insurance, bad debts & other
Repairs/Maintenance & Tenant Installation
Property, Facilities & Leasing fees & comis…
Soft Services
Municipal Charges
Electricity
33.9%
Rates and Taxes
23.1%
Building Management
2.5%
R&M: Building Fabric
3.7%
Cleaning
4.3%
Management Costs
5.8%
Security
6.2%
Municipal Charges
7.3%
All Other Operating Costs
13.2%
Lease administration
Risk management
Compliance
Contract management
Utilities
Property
Management
People Process Place
Facilities Management
Strategic
Tactical
Operational
Facilities Management
60’s development of computers
Drivers Of Change –How Facilities
Management Developed
70’s oil crisis
Unhappiness with space
Cost of space
Rising employee expectations
Impact of IT on
business functions
Pressure for efficiency
because of global competition
Facilities Management
In the early years FM was crisis orientated and reactive. Decisions
about Facilities were dispersed, un-coordinated and came low and late
in the decision structure of most organizations
Source: Bekker 1990:1
Facilities Management – We cannot all be Google
Facilities Management – We cannot all be Google
The Google approach is "right for their own company,", but "each
company needs its own fit between the physical infrastructure of the
office and their own organizational culture.”
Jeremy Myerson - Helen Hamlyn chair of design at London's Royal College of Art and is an expert
in workplace design
Strategic
Tactical
Operational
Strategic Facilities Management
Addresses the War For Talent
Strategic FM is
Employee Experience Centred
Give Employees
▪ The Workplace They Want
▪ The Tools They Need
▪ A Culture they can Celebrate
