The industrial real estate sector is expected to grow on the back of rising manufacturing and e-commerce investments.
The industrial sector continues to exhibit relative stability despite the pandemic. In Colliers’ view, the demand for warehouses, cold storage facilities, and industrial spaces will be driven by a thriving e-commerce segment and a rebound in manufacturing activities. Supply-wise, Colliers sees the delivery of about 85 hectares (210 acres) of new industrial space in CALABA (Cavite–Laguna–Batangas) area from 2022 to 2024, with the province of Batangas covering bulk of the new industrial supply.
In 2022, Colliers expects warehouse lease rates to grow at a faster pace than land leasehold. We see more logistics firms leasing out industrial space with the growing demand in e-commerce and online groceries. Colliers also recorded a decline in vacancy in 2021 as new locators from the manufacturing and logistics segments take up space in CALABA. Colliers also expects vacancy to increase marginally due to substantial new supply in Batangas in 2022.
Colliers encourages developers to highlight the advantages of locating within industrial parks, while both developers and locators should take advantage of tax and non-tax perks awarded by the government. With the rebound of manufacturing-driven foreign direct investments, industrial park developers should closely monitor the profile of incoming locators and evaluate their requirements.