Property developers in the Philippines should build telecommunication infrastructure into projects from the design stage, analysts said, warning that buildings without fiber-ready facilities may struggle to attract tenants and buyers amid elevated office vacancies and a large stock of unsold residential units. Fiber-ready, in practice, refers to buildings designed with the conduits, risers and dedicated telecommunication rooms that let internet providers install fiber service quickly and support multiple carriers.

“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 in a phone interview 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,” he added.

According to Mr. Bondoc, digital connectivity has become a basic requirement for office tenants and homebuyers as hybrid work arrangements persist. Although installing advanced telecommunication infrastructure adds to construction costs, he said developers risk longer vacancies if their properties fail to meet connectivity requirements.

“You don’t want to add to the almost 20% office vacancy and more than 30,000 unsold ready-for-occupancy condos in Metro Manila right now,” Mr. Bondoc said. “So you really have to be proactive.”

He added that redundancy in internet connections — parallel links from separate providers that keep tenants online if one network fails — is a key requirement for business process outsourcing companies, a major source of Metro Manila’s office demand that depends on uninterrupted connectivity, as well as for corporate tenants. Buildings without adequate fiber infrastructure and support for multiple providers, he said, may face difficulties attracting occupiers.

Separately, Savills Philippines Research Manager Kathrina Angelica Bautista noted that older properties built before the widespread use of fiber internet often face limitations from outdated cabling and crowded utility risers.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 in a Viber message.

Installing conduits, risers and dedicated telecommunication rooms during construction is less expensive than retrofitting completed buildings, she said, noting that retrofits 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 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 — a review whose outcome will help decide whether fiber-readiness remains a competitive differentiator for developers or becomes a codified baseline for new construction.

Source: BusinessWorld