Optimism continues to grow in the Philippine industrial property market, driven by the demand for cold storage facilities, the growth of e-commerce, and government efforts to boost manufacturing investments.
“The Philippine industrial market outlook continues to be optimistic and expected to keep its momentum in the next five years as the country’s warehousing market has been growing at a compound annual growth rate (CAGR) of 6.5 percent. The growth in the Philippine industrial property market is driven by the country’s huge population and increasing consumer spending,” Lobien Realty Group CEO Sheila Lobien said in an email.
Lobien emphasized that the demand for logistics and warehousing facilities is being fueled by companies expanding beyond Metro Manila to cater to the growing e-commerce sector. Additionally, the increasing middle class and shifting consumption patterns have driven demand for cold storage, particularly for fresh, processed, and frozen foods.
“This shift necessitates the development of more cold storage facilities to accommodate the rising consumption of these items,” Lobien said. The growth of online food delivery services has also intensified the need for cold chain logistics, encouraging major players to expand their infrastructure.
Manufacturing demand
The government’s focus on promoting the local manufacturing of semiconductors and electric vehicles (EVs) is also contributing to the industrial sector’s growth. Colliers Philippines predicts these industries will drive industrial space absorption in key areas like CALABA and Central Luzon. Several companies, such as Schneider Electric and Grandsun Advanced Electronics, have already announced expansion projects in the country.
The role of infrastructure
Infrastructure development plays a crucial role in the growth of the industrial sector. KMC Savills notes that improved transport connectivity through government projects makes industrial properties more attractive to investors. Properties within ecozones, particularly those under the Philippine Economic Zone Authority (PEZA), offer added benefits like tax incentives, modern facilities, and strategic locations.
“Ecozones typically offer tax incentives, exemptions, and reduced tax rates to its locators, making these areas highly attractive to both entrepreneurs and investors. The financial advantages create a favorable business environment, which stimulates economic activity and leads to job creation. This increase in business interest and employment opportunities drives up demand for land, thereby raising property values,” Lobien explained.
Industrial hubs like Light Industry & Science Park IV
An example of such growth potential is Light Industry & Science Park IV by Science Park of the Philippines, Inc. Strategically located near Metro Manila, this industrial park provides robust infrastructure and excellent access to both domestic and international markets, making it an attractive destination for various industries.
Lobien also pointed out that the government’s continuous infrastructure improvements in ecozones, including roads and utilities, further enhance the appeal of these locations, contributing to rising property values.
As the industrial sector continues to evolve, the Philippines is well-positioned to capitalize on the growing demand for logistics, warehousing, and manufacturing spaces. With its strategic location in Southeast Asia, government-backed infrastructure developments, and the rise of industrial hubs like Light Industry & Science Park IV, the country is set to become a key player in the region’s industrial landscape. The continued investment in cold storage, e-commerce logistics, and semiconductor manufacturing further strengthens the foundation for sustained growth. As the market momentum builds, the Philippine industrial sector is not just keeping up—it is leading the way toward a more dynamic and interconnected future.
Science Park of the Philippines’ Best Industrial Development win for Light Industry and Science Park IV at this year’s PropertyGuru Awards is a testament to our commitment to excellence, integrity, and being a driving force to nation-building. From our developments that are at par with global standards, outstanding park management service, sustainability and community engagement efforts, and livelihood generation, our business is an entire ecosystem that contributes to the country’s progress. Moreover, we are very attuned to caring for the environment through our many sustainability initiatives such as starting climate change mitigating measures in master development planning, re-engineering CWTP’s compliant with new government regulations, making our parks electric vehicle-ready, and installing solar roofs. These show that we’re also in step with innovative solutions that will make our developments future-ready. We are proud to be the pioneering developer of private industrial estates and that we’re still growing and getting stronger after over three decades. – RICHARD ALBERT I. OSMOND President and CEO
