The Dominican Republic has become one of the most competitive destinations in the Caribbean and Central America for the Business Process Outsourcing (BPO) sector. Call center, back office, and shared services companies are finding fertile ground for growth in our country.
In my role as a specialized real estate advisor, I have assisted many of these organizations in their establishment, expansion, and relocation processes in Santo Domingo. This article presents a realistic view of the sector, built on experience, interviews with key players, and an analysis of the real estate market and national talent pool.
1. Why does the Dominican Republic attract BPOs?
The main reasons that have made the country a strategic option include:
• A strategic and privileged geographic location with a time zone aligned with the U.S., our largest and best trading partner. Most of their headquarters are located in the United States, and thanks to the connectivity of our international airports, foreign executives and their clients can quickly reach the Dominican Republic from any destination.
• A young, skilled, bilingual, and service-oriented workforce, with a North American accent in their English.
• A modern telecommunications network with good connectivity and redundancy.
• Tax incentives in free trade zones and laws that encourage this type of investment. Furthermore, any company wishing to establish itself in the country has the support of various stakeholders in the sector, including the National Free Trade Zone Council, the free trade zones themselves, the Ministry of Labor, landlords eager to lease their spaces, and all the public and private companies highly interested in continuing to attract these sectors.
• Political and economic stability and a very favorable business climate.
According to several industry leaders, the country offers "a favorable environment for innovation and sustainable growth," with "operating costs that remain competitive compared to other markets."
2. The Corporate Real Estate Market: Strengths and Realities
Regarding spaces to rent or buy, the Dominican Republic has taken significant steps in modernizing its offerings, with more sustainable, efficient buildings adapted to new ways of working. Large call centers require ample square footage, often entire floors of 1,000 m2 or more, to be efficient and maximize every usable square meter. Here are a few key points to consider when selecting spaces:
• Availability: There are options in prime and emerging areas, although demand is growing faster than supply. Every day, more new and repurposed buildings, previously used for one purpose, are being converted to accommodate these players, such as warehouses, showrooms, shops, and cinemas.
The required footprints range from 500 m2 to 15,000 m2. Opportunities for these types of spaces can still be found, whether new developments in the central business district or within free trade zones, such as ZFLA and San Isidro.
• Prices: Regarding rents per square meter, we are not as competitive as in other countries because here the price per square meter starts at around $18–$35 in new, prime, and previously owned areas, plus maintenance, while in other countries similar spaces are offered for around $8–$16 per square meter. These spaces are rented in shell condition or partially finished, when they are previously owned. In other, more sophisticated countries, we see that landlords offer "tenant improvements" and "tenant allowances ," which are improvements included in the rent and loans for those improvements, such as flooring, ceilings, air conditioning, lighting, fire detection and suppression systems, among other things. Every day we see landlords more motivated to work on these issues, whether by offering longer grace periods, tiered pricing, flexible annual increases, or including certain improvements in long-term, guaranteed leases.
• Adaptation time: Many spaces are delivered in shell condition, which allows for flexibility in the design of open and modern spaces, but requires time and investment. Adaptation time can take from 3 to 6 months in small and medium-sized spaces, and for much larger spaces, it could take up to a year. In the country, we have many partners to facilitate these plug-and-play and/or remodeling projects, making the process smoother, from local and international architects, specialized engineers, and project managers, to suppliers of finishes, technology, furniture, and many other items that can be sourced domestically, while others must be imported.
Many executives agree that working with specialized consultants from the beginning "reduces friction, optimizes costs, and improves the functional design of the work environment."
3. Do we have the necessary talent?
Human talent remains the country's greatest asset. Companies highlight:
- Good level of empathy, service attitude and quick adaptability.
- Willingness to learn quickly
- Sense of belonging
- Young people familiar with technology and willing to learn.
- Competitive salaries compared to other countries in the region.
- The cost per person per hour is competitive compared to other countries in the region. The greatest asset for these companies isn't the property, the location, the rent, or the decor; it's their human capital. And all decisions must be based on that.
- Good level of English, especially in Santo Domingo and Santiago. They are mostly young, but there are people of all ages.
However, they also point out that competition for qualified talent is intense, and that recruitment processes are becoming more complex.
4. Real challenges in the sector
Despite the potential, there are points that require immediate attention:
- High adaptation costs, especially in central areas.
- High rental costs. In other countries, many businesses set up in free trade zones or industrial areas where the spaces are warehouse-type buildings of two, three, or four levels, which are more economical than locating in the central industrial park in Class A or B buildings.
- Limited space availability: there are buildings, for example, 4,000 square meters divided into 5-10 floors, but call centers often prefer that same 4,000 square meters spread over two floors of 2,000 square meters each. Therefore, there aren't many buildings with this type of space, and if there are, they often have a parking shortage. The Dominican Republic has an aspirational culture; any young person starting their career, if they don't own a vehicle, one of their goals is to buy a motorcycle. From a motorcycle, they progress to a car, then a car, and finally, an SUV. Then, when they go to work, they need somewhere to park, and the available parking is limited. The supply in new buildings is one parking space per 30 square meters, but the demand is often much higher. Let's illustrate a real-world situation: a BPO with 1,000 employees occupying 5,000 square meters, with an estimated one person per 5 square meters, and 20% of them arriving by car. This creates an impact equivalent to a location with approximately 200 parking spaces. A property with 5,000 square meters doesn't necessarily have 200 parking spaces; the building might have 100, but there's nowhere else to rent nearby. And there's no street parking either.
- Lack of large "turnkey" spaces with immediate availability.
- Difficulties in retaining bilingual and specialized talent.
- Rigidity in real estate infrastructure to adapt to more agile models.
- High cost of operating infrastructure and contractual flexibility
This is where the value of strategic consulting comes in. Properly aligning operational needs with physical space can make the difference between a smooth expansion and a poorly executed investment.
5. Where is the BPO sector headed in the Dominican Republic?
Nearshoring, automation, and shared services trends are positioning the Dominican Republic to become a regional hub.
Many companies are already considering expanding to new cities within the country or diversifying their service portfolios. The legal framework is also being strengthened, and infrastructure is being improved to attract more investment.
The Dominican Republic remains a place where new companies can establish themselves and see a great opportunity to offer their services in destinations like this. Another advantage is that when these companies set up here, their executives can find a range of good hotels, restaurants, houses or apartments to live in, private clubs, and leisure centers. Furthermore, they work Monday through Friday at their offices, and on weekends they can enjoy time with their families or on a personal level, such as golf, the beach, fishing, or the mountains, in various easily accessible destinations. This is an advantage that in some other countries, where people simply arrive, work, and leave.
In conclusion: a comprehensive vision for progress.
The BPO sector in the Dominican Republic has great potential. We have clear advantages—location, talent, connectivity, and stability—but also challenges that must be addressed from a strategic perspective.
As a country, we must work together:
• The government, to maintain and improve incentives for new companies to come here, and for existing companies to grow, while also continuing to support the improvement of English proficiency by supporting language schools and universities.
• BPO companies, to retain and develop talent.
There's an opportunity for call center owners to involve architects who can transform their spaces with architecture and design, lighting, and leisure areas. This is what makes your employees incredibly happy and motivated, creating a beautiful, clean, and organized environment. Employees will say, "Wow, I don't want to go home! I want to spend the whole day working here!" This will lead to increased productivity, employee retention, and a highly successful business.
The real estate sector should offer flexible, modern, and profitable spaces, creating specialized infrastructure for next-generation call centers. Offering more spaces for these purposes that are not high-end corporate offices or Class A and B buildings, but rather buildings with fewer floors and larger floors, where what happens inside is more important and every square meter is efficient, with ample parking, with increasingly important amenities such as leisure areas, recreation areas, and dining areas, where these employees who spend 8 fixed hours or more, some in night shifts, proactively making calls, selling a service or product, or receiving calls, orders, complaints, and follow-ups, so to retain these employees, these spaces must be designed from the architecture, their interior design, the amenities, and we must pay close attention to emotional salary.
The Dominican Republic has the potential to become a major regional BPO hub, presenting an opportunity for the free trade zones located throughout the country. These zones, typically focused on manufacturing—tobacco, candles, medical devices, and electronics—can also explore the possibility of offering "office park" spaces: warehouse-style buildings with larger floor plans. These spaces would have more affordable rental rates than industrial parks and be closer to the workforce.
Based on my experience, I recommend that any company interested in establishing operations in the Dominican Republic engage a specialized advisory team from the outset. This will enable them to find the best location, negotiate optimal terms, and tailor their spaces to their actual operational needs.
Yes, the Dominican Republic is an excellent option for the BPO sector. However, we must make informed, coordinated, and long-term decisions.
