Call centers, BPOs expanding out of Metro Manila

Colliers International, in its recently released Property Market Overview, confirmed the trend of existing call centers and Business Process Outsourcing (BPO) companies expanding out of Metro Manila. According to its Associate Director for Corporate Real Estate Advisory, Phillip Añonuevo, "Several existing call centers are now looking into expanding in the Visayan Region, Central and Northern Luzon because the labor pool in Metro Manila is becoming scarce. This is in addition to thinning vacancy rate in the business districts."

Colliers International further validated this as vacancy rates in the Makati CBD continued to ease. As at end-June, office vacancy was recorded at 11.1 percent as compared to 13.1 percent in the same period in 2003. Vacancies are expected to head south as no new significant supply is expected in the next three years. In fact, construction is focused on purposely-built call center facilities in the CBD such as the PeopleSupport Center slated to complete by the first quarter of 2005.

Consequently, lease rates within the Makati CBD are starting to escalate. Quarter-on-quarter, rents for Premium-Grade buildings increased by one percent to an average of P495 per square meter per month. With the continued demand outpacing construction of premises, Colliers estimates rents to further improve and vacancies to decline in the next 12 months. Expectations are for rents to hit an average of P557 per square meter per month as CBD vacancies fall to single-digit levels.

Colliers International was recently appointed by eTelecare and ClientLogic as tenant representative for their site search in Cebu and Baguio, respectively. ClientLogic is the first call center in Baguio City, occupying a 3,000-square meter office space in Plastic and Tools Building in BEPZA while eTelecare is expected to open its 6,600-square meter office at AsiaTown, Cebu City sometime in December 2004.