3/21/07

IF YOU BUILD IT, WILL THEY COME?

One client chairs a group of companies that successfully developed several real properties during the past few decades. Not long ago, he consulted me regarding the BPO prospects of his company. He mentioned having noticed the boom in the office leasing business due to the upsurge of BPO firms. Call Centers have taken over a number of previously empty office buildings and numerous projects that are yet to break ground have already been fully committed.

I was given a preview of their inventory that can possibly be converted into BPO facilities and asked of my opinion and help, being an industry insider. The following day, I wrote a few Call Centers and made a preliminary presentation of my client. Several replies came but I find a particular response worth sharing in this space.


A consultant to a giant call center company, called and asked to meet with me in their office. I agreed while asking if their client has a requirement that matches our inventory. The reply was positive. Arriving on time for my meeting, I was made to wait for half an hour while the person I was to meet, rummaged through her things. During the meeting, I described the properties available for BPO use and asked for its prospects (with her client). She then enumerated a number of projects that my client should put into effect. In summary, my client was being asked to build an expensive BPO facility, with a minimum size of 5,000 square meters, among other things.

Very politely, I asked if their call center will lease our building, should my client spend for the infrastructure that they ask for. The reply blunt was "First, build your facility, then we will offer it (to clients)." A bit surprised, I explained that my client is willing to invest, but no businessman will spend (that much) without any indication that money will be made from it.

The reply was "You have to show to your prospective lessee/s that you have the confidence in your company and the capability to spend & maintain the facility, before you even talk to them."
She added; “Look at this particular building at _ _ _ _ _ _. It was built without any lessee on the list, but now it is filled to capacity.”

Geesh!!!! TO BE CONTINUED....







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