Business
Who still needs the office? U.S. companies start cutting space
NEW YORK (Reuters) – Corporate America is downsizing its real estate footprint as companies allow more employees to work from home, a growing threat to the bottom line of owners of traditional office buildings and a sign that companies are looking for ways to cut costs as a result of the coronavirus pandemic.
A Reuters analysis of quarterly earnings calls over the past week revealed more than 25 large companies plan to reduce their office space in the year ahead, a move designed to reduce the second-largest expense after payrolls at corporations.
Energy company Halliburton Co said it intends to close more than 100 facilities.
Financial services company State Street Corp said it is going to nearly double the workers assigned to one office before adding additional space, based on the assumption that a significant portion of its workforce will continue to work from home even after a vaccine for COVID-19 emerges.
Bedding company Sleep Number Corp plans to slow the growth of its total square footage as more consumers shop online.
“You should expect and hold us to a much lower footprint really starting quite soon,” State Street Corp’s CEO, Ronald Philip O’Hanley, said on the company’s July 17 earnings call.
Regions Financial Corp, meanwhile, told analysts: “Whether through increased use of hoteling, work from home or modified scheduling, we are confident overall office square footage will continue to decline,” as some workers share desks or stop coming into the building.
Analysts say the plans to cut back on real estate are likely the first wave of cost-cutting measures to hit office workers as companies try to maintain margins going into what may be a long recession. So far, the majority of the 14.7 million U.S. jobs lost during the pandemic have been in hard-hit areas such as restaurants, travel and retailers.
Reductions in office spending could likely be followed by layoffs and investments in technology that should help improve productivity with a reduced workforce, said Bill McMahon, chief investment officer of active equity strategies at Charles Schwab.
“Clearly, we’re seeing businesses starting to rationalise their physical plants and at some point they will turn to labor too,” he said.
Morgan Stanley in June forecast that work-from-home policies will increase vacancy rates in office buildings. Vacancy rates in New York will reach 10%-12% in the next two to five years from 8.7% now, while San Francisco will reach 7-9% from 5.8%, it predicted.
So far, concerns about declining office space use have not hurt commercial mortgaged-backed securities, with the iShares CMBS ETF up 4.4% for the year to date.
While companies tend to cut back on their real estate needs during typical recessions, the last four months of economic lockdown have shown that many workers can remain productive at home, said Danny Ismail, an analyst at independent research firm Green Street Advisors. As a result, the cutbacks that companies are making are more likely to be permanent, he said.
“Every company just went through a mass work-from-home experience and for the majority it was mostly positive,” he said.
Green Street Advisors expects that office demand will be reduced by up to 15% as a result of work from home policies once the coronavirus pandemic is contained.
That reduction in necessary space will most likely hurt real estate investment firms with large exposures in cities such as San Francisco and New York as workers are expected to be given more freedom by employers to live in lower-cost areas away from the coasts, Ismail said.
“Even before COVID-19, you’d seen a migration from majority coastal cities along the Northeast and West Coast to Sun Belt markets,” he said, referring to the region stretching from Florida to Southern California, collectively known as the Sun Belt.
“We think that will accelerate in the future as the cost of living, quality of life and ability to keep your job is much better in a post-COVID-19 world than before.”
Reporting and photo: Reuters
Business
Atmosphere Core appoints Maurice Van Den Bosch as GM of RAAYA by Atmosphere, Milan Mookerjee as VP of Human Resources
International hospitality company Atmosphere Core has announced the appointment of Milan Mookerjee as Vice President of Human Resources.
This appointment reflects Atmosphere Core’s ongoing commitment to enhancing guest experiences and fostering a people-centric culture across its portfolio of three brands and nine resorts.
Veteran Human Resources leader, Milan Mookerjee will oversee talent management and employee growth initiatives across the Atmosphere Core’s resorts in the Maldives. With over 15 years of industry experience, Milan is a seasoned professional known for aligning HR initiatives with business goals and fostering a human-centric culture.
Reflecting on his approach to human resources, Milan said, “Leadership is a privilege that we owe to our team. Intentionality with direction and purpose drives results, and I am committed to fostering a culture that empowers our people to grow and succeed. In hospitality, success begins with a motivated, engaged workforce, and I believe in creating an environment where employees feel valued, supported, and inspired to deliver exceptional guest experiences. This includes investing in continuous learning, nurturing talent, and promoting a strong sense of belonging within the team.”
Before joining Atmosphere Core, Milan served as Head of Human Resources and Training at Encalm Hospitality Pvt. Ltd., where he led HR and training functions to drive business growth. He has also held several HR leadership roles at prominent companies in India, with a proven ability to develop talent and design learning programmes tailored to business needs.
Meanwhile, Maurice Lucien Van Den Bosch recently returned to the Atmosphere Core family as General Manager of RAAYA by Atmosphere.
Born in Australia, Maurice Lucien Van Den Bosch draws from the country’s renowned laid-back yet dynamic culture in his leadership style, fostering a spirit of inclusivity, adventure, and warm hospitality. He brings over 24 years of expertise in resort management, with a demonstrated ability to exceed profit targets, cost-effectively develop new projects, and lead culturally diverse teams with motivation and efficiency.
Maurice’s extensive experience includes leadership roles at some of the world’s top hospitality brands in the Maldives, Sri Lanka and the Caribbean. A familiar face within the Atmosphere Core family, Maurice has served as General Manager at both OZEN LIFE MAADHOO and Atmosphere Kanifushi.
As the General Manager of RAAYA by Atmosphere, Maurice will leverage his deep understanding of the brand to lead the resort with a focus on anticipating, crafting, and elevating guest experiences. “The culture and hospitality inspired by the Joy of Giving resonate deeply with me, and this shared value brings me back to the Atmosphere family”, Maurice said. “At RAAYA by Atmosphere, we are creating a castaway island experience of choice, a guest experience like no other, with a fine balance of escapism and energy. And I look forward to foster a collaborative working environment so that we create unforgettable moments for our guests.”
Ashwin Handa, Senior Vice President of Operations at Atmosphere Core, emphasised the importance of a strong leadership team. “At Atmosphere Core, we foster a people-first culture built on trust, collaboration, and mutual respect, ensuring that every employee takes pride in their work. This dedication extends to curating experiences that guests cherish and return for. Maurice’s deep industry expertise and understanding of our brand, combined with Milan’s people-centric approach, will significantly enhance our operations and guest satisfaction across our resorts”.
Atmosphere Core is a dynamic international hospitality company with three distinctive lifestyle brands, THE OZEN COLLECTION, COLOURS OF OBLU, and Atmosphere Hotels & Resorts. The company operates nine resorts in the Maldives and has a strong pipeline of one resort in the Maldives, one resort in Sri Lanka, and fourteen hotels and resorts across India – all set to open within the next three years. Distinctive design, an authentic sense of place, inspiring service styles, and the freshest and finest cuisine lend a unique flavour to every Atmosphere Core property.
Business
Maldives makes export of baled PET waste for recycling with support from The Coca-Cola Foundation
The Coca-Cola Foundation and partners have announced that a container of baled post-consumer Polyethylene Terephthalate (PET) plastic was exported from Male as a part of Sustainable Island Waste Management and Plastic Recycling Initiative.
Completed on World Cleanup Day 2024, the event also marked the handover of The Coca-Cola Foundation (TCCF)-funded infrastructure, which includes pickups and balers, to the government-owned Waste Management Corporation (WAMCO).
The TCCF-funded initiative is a collaboration between the Maldives Ocean Plastics Alliance (MOPA), and WAMCO, and represents an important development to strengthen the PET collection process and address the issue of plastic waste in the Maldives.
This initiative will export baled PET to Malaysia and China for recycling. While PET bottles have been exported in the past, baling the waste significantly improves the efficiency of storage and transport, marking an advancement in the process.
The overall objective of the TCCF-funded Island PET Collection Project is to help provide a countrywide solution for plastic waste recycling in Maldives by establishing both the infrastructure and systems required.
Currently, much of the waste in Maldives is disposed of or incinerated in K. Thilafushi industrial island, and this project represents a shift toward better waste management practices.
The project focuses on expanding PET collection systems beyond Greater Male’, improving collection efficiency across the nation until local recycling capacity is developed.
“This project is a turning point for the Maldives in our fight against plastic waste,” said MOPA President Ahmed Maumoon. “By educating communities and aligning with national partners like WAMCO, we are not only improving how waste is managed today but also setting the stage for long-term sustainability and environmental health.”
By collaborating with WAMCO, MOPA has supported the roll-out of community education programs and has worked to ensure the infrastructure deployed with funding from TCCF, such as compactors and pickups are used effectively across Greater Male’ and across other islands.
“This initiative represents a crucial step toward improving plastic waste management and enhancing recycling efforts in the Maldives,” said WAMCO Managing Director Mujthaba Jaleel. “By equipping islands with the tools and infrastructure needed to collect and process PET waste, we are not only helping address the immediate challenge of plastic pollution but also building a foundation for a more sustainable future.”
WAMCO’s role is pivotal in overseeing the operational aspects of PET waste collection, ensuring that baling and export processes run efficiently.
“Our commitment to this project extends beyond waste collection,” said Carlos Pagoaga, President, The Coca-Cola Foundation. “By funding work of MOPA and WAMCO, we aim to foster a culture of sustainability in the Maldives and help support a circular economy.”
Events
Italian and Spanish media experience Maldivian paradise on exclusive journey with Atmosphere Core
From September 28th to October 4th, 2024, Atmosphere Core hosted an exclusive media trip to the Maldives for ten prominent journalists and PR professionals from Spain and Italy. The group experienced the serene and captivating lifestyle of two stunning private islands—OBLU XPERIENCE Ailafushi and RAAYA by Atmosphere—both renowned for their distinctive hospitality, thoughtfully curated holiday plans, and the unique “Joy of Giving” philosophy.
“At Atmosphere Core, we believe in a more creative approach to media trips,” said Euan Blake, Assistant Vice President of Communications. “The Italian and Spanish markets have been expanding for the Maldives, with a notable increase in room nights and revenue compared to last year. Over the past two years, we’ve been building strong relationships in these regions, and this journey through our islands aims to leave journalists with not only cherished memories but also lifelong friendships.”
The trip began at OBLU XPERIENCE Ailafushi, a lively four-star resort just 15 minutes by speedboat from Velana International Airport. Journalists were welcomed with breathtaking lagoon views and vibrant social gatherings at the X360 Bar. A standout experience was the customised Martín Códax Wine Masterclass at the Element X restaurant, led by Ms. Celina, a representative of Bodegas Martín Códax, and Nicolas Laguette, Director of Wines at Atmosphere Core. Representing 600 winemaking families from northern Spain, Ms. Celina guided the group through an exquisite multi-course wine tasting, featuring a selection of wines perfectly suited for the tropical climate and fresh seafood.
This was followed by an unforgettable underwater dining experience at the Only BLU restaurant and a visit to the neighbouring “island of love,” OBLU SELECT Lobigili, where they enjoyed a chic lunch at Ylang Ylang. The island’s lively, party atmosphere provided the journalists with a full immersion into the vibrant and relaxing resort lifestyle.
Next, a scenic seaplane journey transported the group to RAAYA by Atmosphere—a picturesque escape offering a blend of fairytale island charm and authentic Maldivian experiences. The 45-minute flight over the stunning atolls’ turquoise waters set the stage for their arrival in paradise, presenting the perfect introduction to the Maldives’ breathtaking beauty.
At RAAYA, the journalists experienced an ideal mix of energy and tranquility. A private dinner atop a secluded watchtower, inspired by the legendary sailor Seb, captured the essence of the resort’s castaway theme. The group explored the island’s natural wonders, took part in customised activities, and dined at RAAYA’s signature restaurants, including Seb’s Shack, Ampers&nd, and the Italian-inspired The Village.
Throughout their stay at both islands, the media guests were treated to rejuvenating spa therapies and wellness sessions at ELE|NA Ayur, Atmosphere Core’s signature spa and wellness brand. This immersive journey offered the journalists a true taste of tropical luxury, intertwining indulgence and adventure into every experience. Their stories are sure to inspire countless Spanish and Italian travellers to discover the hidden treasures of OBLU XPERIENCE Ailafushi and RAAYA by Atmosphere firsthand.
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