Marija Marjanovic, manager at CBS International - Management and maintenance in Real Estate - an essential part of today's business

In recent years, there has been a noticeable increase in the demand for Property and Facilities Management services, whether it pertains to commercial, residential, or industrial properties. For those not familiar with the real estate world, it might not be entirely clear what these services actually entail and how they differ. We discuss this topic with Marija Marjanović, Head of Integrated Facilities Management, at the leading real estate consultancy in Serbia, CBS International, part of the Cushman & Wakefield Group.

What is the difference between Property and Facilities Management services?

- Successful business operations are not possible without the support of a modern and organized management system. Property Management involves the daily supervision of residential, commercial, or industrial properties by professional companies and experts. Property Management has become a important service for most investors, as it encompasses the overall management and control of all processes related to the operation of the facility, with a special focus on commercial and financial management. The most dynamic segment in property management is undoubtedly the management of office buildings.

Facilities Management is the concept of maintaining a facility and its environment, with the aim of ensuring smooth operation and a high level of safety within that facility. It includes services and tools used to ensure the functionality, safety, and efficiency of the facility and its associated systems. This includes services such as technical maintenance, cleaning services, physical security, maintenance of security systems, fire protection services, occupational health and safety services, and more. Facilities Management services also involve the preparation of a long-term strategic maintenance plan for the property in accordance with business practices, legally stipulated norms, and recommendations of equipment manufacturer.

Property and Facilities Management are like mother and daughter - Property Management involves space leasing, financial management, and facility maintenance, i.e., Facilities Management. Facilities Management, organized by the owner or lessor of the space, covers the maintenance of common areas, installations and equipment within a facility. Colleagues engaged in maintaining these spaces usually have an office within the office building itself, and as we usually say, they "sit and work in the building".

On the other hand, companies that lease space in office buildings also have a need for facilities management. Although it may sound similar, maintaining common areas organized by the owner of the property (lessor) and maintenance organized by the lessee or the company leasing the space are not the same service. The dividing line is the entrance door to the office space; specifically, the organization and execution of necessary maintenance tasks in the common area up to the entrance door is the responsibility of the property owner, while tasks behind these doors are taken on by the space lessee and/or their hired team.

What does the service of integrated maintenance (Integrated Facilities Management - IFM) of clients' office spaces entail, as a relatively new and modern service in our market?

- The target group of Integrated Facilities Management is tenant companies, not property owners. In practice, this means that companies renting office space engage external service providers who are responsible for organizing various maintenance tasks, including technical maintenance within the rented space (which involves daily technical checks of the space), reception services, physical and technical security systems, cleaning services, house-keeping staff, various types of procurement of office supplies, kitchen supplies, water and beverages, maintenance of plants and related green areas, waste management services, courier and postal services, vending and coffee machine rental services, and more. All these tasks are organized and their execution is monitored by the Integrated Facilities Management department in our company.

The entire process is carried out within planned and approved budgets. This is where the significant financial role of our company comes into play in the process. Thanks to a good coverage of the market and a wide network of subcontractors we collaborate with, we are able to negotiate and secure the best procurement conditions for the client's needs. Due to all the aforementioned, we refer to this service as integrated maintenance.

The main benefits for clients are primarily resource and time optimization, as there is a single point of contact for all maintenance services, a full range of IFM services with quality and time control, cost optimization, and enabling the client to focus on their core business.

How aware are clients of the necessity of this type of service and which services from the whole spectrum are most commonly chosen?

- In the past, companies primarily opted for the service of maintaining the cleanliness of their workspaces, but over time, new needs emerged, and awareness among business people about the broader significance of Integrated Facilities Management grew. Accordingly, clients are increasingly choosing to engage professional service providers like our company, which deal with the organization and execution of maintenance tasks necessary for the normal and smooth functioning of their core business. The contract period for this type of service is a minimum of one year, and in practice, we also encounter examples of contracts for 3 or 5 years, which result from the mutual satisfaction of the contracting parties. This allows companies to relieve their employees and budgets, while simultaneously maintaining control over these fine, soft services and the costs they incur.

In fact, the best indicator that clients are becoming more aware of the necessity of this service, as well as the high quality of service that CBS provides, is that 5 years ago we had only a handful of clients, and today we have more than 100 corporate clients to whom we provide a range of IFM services.

From which industries do clients most often come who opt for these services?

- This service is in expansion, and currently, its biggest users are companies that are leaders in the IT sector, as well as in the food, pharmaceutical, and tobacco industries. For each client, a customized package of services is created based on their requirements to meet the needs of their work environment.

Is there a "season" in this business, in terms of the time of year when there is a higher volume of work?

- The seasons do not significantly affect IFM services. Generally, this is a service that operates 24/7 on a weekly basis. It could be said that the volume of work changes to a lesser or greater extent depending on whether it is the season of annual leave, different events organized by the client in their space, or, for example, the influence of the pre-New Year atmosphere - when decorated Christmas trees are brought into the spaces, and the number of catering orders increases.

How has the pandemic affected this type of service?

- Facilities management services in general, including IFM services, are probably among the few that did not suffer a major blow during the Covid-19 pandemic. Essentially, if at least one person was coming to the office space during the pandemic, almost all IFM services had to be active and executed, both in terms of maintenance and procurement tasks for the client's offices.