BPO firms advised to diversify client profile to be less vulnerable to anti-outsourcing sentiment in US

  "The possible negative impact of this bill can be avoided once the country starts exploring alternative markets," CB Richard Ellis (CBRE) said, in its analysis of the Metro Manila market for office space as it noted how the US market accounts for 70 percent of the BPO market of Philippines-based firms.   New York Rep. Tim Bishop with the backing of the Communications Workers of America union filed the "U.S. Call Center Worker and Consumer Protection Act," which seeks to disqualify from federal loans and grants companies that outsource their call center work.   "The office market ended the year on a high note as rental recovery was evident across major business districts on the back of the strong demand for both traditional and BPO spaces in Metro Manila," CBRE said.   "The continuous growth of the BPO industry has been benefitting the business districts of Fort Bonifacio, Alabang and Quezon City as new and expanding BPO companies continue to locate their operation in these areas," it added.   CBRE said rental growth was sustained in the last quarter (Q4) of 2011 with Grade A rents rising from the previous quarter’s P833 per square meter per month to P840 per square meter per month.   In the Fort Bonifacio development area in Taguig, lease rates remained stable overall in with rents slowly inching up from P695 per square meter per month to P697 per square meter per month.    "Landlords, however, have been cautious in raising rents to maintain the competitiveness of the office market in Makati considering the continued pressure from the other business districts. Supply pressures in the area are expected to ease upon the completion of the Zuellig Building in the second quarter of 2012," it said. New leasable area of 349,570 square meters is in the pipeline this year, but is not seen to adversely affect the vacancy rate of the areaon account of  the strong pre-commitment levels of the BPO office buildings being built.   "In Ortigas business district, vacancy rate remained within the 5-percent level but slightly increased from the previous quarter’s 5.1 percent to 5.68 percent brought about by the supply turnover of 17,058 square meters of leasable area during the quarter," CBRE said.    Expected supply of 292,368 square meters of leasable area will be turned over by 2012 in Ortigas.  "Most of these office space developments will cater to the growing BPO market," CBRE said.   In Quezon City, vacancy rates stayed under 3 percent in Q4 but rose from the previous quarter level by 0.76 percent to 2.33 percent.  "Additional supply of 52,496 square meters of BPO leasable area is expected in 2012," the real estate advisor added. — ELR, GMA News