Strategic Facilities Management Contingencies Implemented by Office Real Estate Owners in Response to Drought Risks in Cape Town

Climate change has impacted the natural water supply in South Africa. This has resulted in a more intentional adoption of environmental, social and governance (ESG) initiatives, specifically within the context of real estate. Water management is one of the key ESG factors, which became apparent to office real estate owners during the 2018 drought in Cape Town. Strategic facilities management (FM) is recognised as the crucial link to ensure that strategic real estate goals are achieved. A form of strategic FM pertaining to water is defined as water management features and initiatives (WMFIs). The research comprised a multiple case study analysis where senior real estate practitioners were intereviewed in a semi-structured format. The data was analysed via thematic analysis, where the following prominent themes emerged: strategy towards WMFIs; implementation of WMFIs; drought preparedness; benchmarking and consumption; and barriers and drivers of WMFIs. The results indicated that office real estate owners were relatively well prepared for the 2018 drought. The majority of WMFIs were reactionary, as they appeared to form part of future strategic risk plans and ESG objectives. The barriers and drivers to the implementation of WMFIs were explored where one of the main barriers was cost, however drivers were identified as cost effective measures that were successful in reducing water consumption and addressing ESG strategies. The Cape Town drought tested the resilience of office real estate owners and fast tracked a change in addressing water supply problems.