Fiber-ready buildings essential to attract tenants and buyers in Philippines, analysts say

Property analysts in the Philippines say developers must incorporate fiber-ready telecommunications infrastructure during the design stage to avoid high vacancies. Without it, buildings risk losing tenants and buyers in a market with nearly 20% office vacancy and over 30,000 unsold condos in Metro M

Property analysts have warned that developers in the Philippines should incorporate fiber-ready telecommunications infrastructure during the design stage of projects, or risk struggling to attract tenants and buyers amid elevated office vacancies and residential inventory.

"If you want to actively tap demand in the market, you really have to be fiber-ready," Colliers Philippines Director for Research Joey Roi Bondoc said on Wednesday. "If you want to tap demand from renters, from buyers, it's important, of course, that your condominium is fiber-ready because it's part of the checklist of a lot of companies now."

Mr Bondoc said digital connectivity has become a basic requirement for office tenants and homebuyers as hybrid work arrangements persist. While installing advanced telecommunication infrastructure adds to construction costs, developers risk longer vacancies if they fail to meet connectivity requirements. "You don't want to add to the almost 20 per cent office vacancy and more than 30,000 unsold ready-for-occupancy condos in Metro Manila right now," he said. "So you really have to be proactive."

He said redundancy in internet connections is a key requirement for business process outsourcing companies and corporate tenants. Buildings without adequate fiber infrastructure and support for multiple providers may face difficulties attracting occupiers.

Savills Philippines Research Manager Kathrina Angelica Bautista said older properties built before the widespread use of fiber internet often face limitations from outdated cabling and crowded utility risers. "Offices with fiber-ready infrastructure are more attractive to tenants because companies can start operations sooner," she said. Installing conduits, risers and dedicated telecommunication rooms during construction is less expensive than retrofitting completed buildings, which may require structural modifications and disrupt occupants.

The analysts' comments follow calls by Globe Telecom, Inc. for developers to work with telecommunication providers during the design phase of projects. Globe President and Chief Executive Officer Carl R. Cruz earlier said early coordination could help avoid redesign costs and identify infrastructure requirements before construction begins. The telecommunication company has also proposed including fiber-ready facilities and in-building connectivity requirements in the review of the National Building Code of the Philippines.