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Bacolod: An Attractive Hub for Global BPO Companies

Colliers projects that Bacolod City is a potential commercial hub for large global outsourcing corporations, able to handle the industry's enormous demand, according to Sunstar.

The company’s Head of Research and Associate Director, Joey Bondoc, credited their optimistic view to the talent pool and infrastructure present in the Visayas hotspot, stating that it has the potential to become a "big outsourcing player" outside the capital region.

Colliers pointed out that the city is already home to global outsourcing corporations in the present day. Bacolod will become a more competitive environment in the coming years due to the completion of additional office space, which will further attract players.

According to Colliers, the development of outsourcing operations in Bacolod and the increase in the number of inquiries for office space in the city should drive national developers to offer leasable space in the region. They suggest developing integrated communities that include offices, residential units, shopping malls, and institutional institutions such as schools and hospitals, in addition to retail and residential areas.

Increasing Demand for Office Space in Bacolod

Colliers has recommended to developers considering building offices in the highly urbanized metropolis that they have floor plates between 1,500 and 2,000 square meters (or 16,000 and 22,000 square feet) to accommodate businesses that are combining their operations.

The agency suggested creating flexible workspaces to accommodate freelancers, startups in the financial technology industry, game development companies, and software engineering businesses. Incubation spaces are an option for tenants using these flexible workspaces.

However, according to Colliers, "plug-and-play" office spaces are "possible" in the heavily urbanized city. Hubs for health information management and game creation are located in Bacolod, and both of them require plug-and-play offices that reduce the amount of money spent on fixed assets. This is an opportunity for real estate developers to capitalize on the rising demand for property.

In addition, Colliers recommends that property developers work with the owners and operators of PEZA-accredited properties to recruit renters interested in securing tax incentives.

The data says Bacolod is becoming increasingly popular as an investment destination and real estate hotspot. It was revealed that the proportion of commercial listing supply in the Visayan city increased during 2021, which led to the property platform naming it as one of the top 22 places to keep an eye on in 2022.

A Promising Future for Informational and Technological Landscapes

Since a long time ago, Bacolod has had a reputation for being an innovative city that is home to a thriving information technology and business process management (IT-BPM) industry. In 2010, when the Department of Information and Communications first introduced its Next Wave Cities program, this area was one of the top candidates to be considered for participation. The following year after that, it remained in the same spot on the list of cities to keep an eye on.

The acknowledgment brought attention to the fact that the city is prepared to house outsourcing enterprises. The acknowledged cities were chosen after being judged on several criteria, including the availability of talent, the infrastructure, the business environment, and the cost.

Infrastructure Projects Serving as Supporters

Infrastructure projects in Bacolod support the city's capacity to increase the number of enterprises it hosts and keep its real estate market active. Accessibility is expected to improve as a result of the development measures undertaken by the government, which should, in turn, make it easier to transfer goods and services.

The Philstar published an article in April that stated the then-secretary Department of Public Works and Highways (DPWH) committed to continuing and finishing the Bacolod-Negros Occidental Economic Highway. This highway is part of the Build, Build, Build program that the Duterte administration is implementing.

The bypass route, which was constructed to alleviate traffic congestion in the region and make easy transportation more accessible, reduces the time it takes to get from southern Negros and northern Negros to Bacolod-Silay Airport Road by 25 and 40 minutes, respectively. It will cater to around 20,000 passengers each day.

Construction began in April 2017, and it is not expected to be completed until December 2024. It is anticipated that the project, which has a total cost of 7.97 billion pesos, will fuel economic expansion in the province of Negros Occidental.

A further infrastructure project, the Bacolod-Silay Airport, is slated to make the urbanized metropolis an even more attractive location for commercial enterprises. The aviation hub in the City of Smiles has been put on the list of airports that have enhanced facilities and can allow night flights, according to an article published by Manila Standard.

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