The Philippine industrial sector has been recording sustained growth. National developers are launching new industrial parks in the country’s major corridors, central and south Luzon. New manufacturing locators are finding it viable to open factories and lease warehouses in these two industrial corridors, and this is partly supported by promise of a better connectivity.
What’s also interesting is that more and more high-value manufacturers continue to locate in central and south Luzon–indicative of improving profile of industrial locators in Luzon. Colliers Philippines believes that central and south Luzon will likely continue attracting these high-value manufacturers, and this should have a positive spillover impact on the property sector–potentially resulting in generation of demand drivers for office, residential, retail, and leisure segments.
Driving Philippine economy
Central and Southern Luzon have always been major growth drivers of the Philippine economy. In 2024, data from the Philippine Statistics Authority (PSA) showed that these regions accounted for a quarter of the country’s gross domestic product (GDP). In addition, Central and Southern Luzon are two of the biggest contributors to the Services and Industry sectors in 2024, along with Metro Manila.
The growing industrial demand in Central Luzon and CALABARZON should also be supported by the completion of major infrastructure projects. Colliers believes that the modernized Clark International Airport and the completion of the Subic-Clark-Manila-Batangas (SCMB) cargo railway, Bulacan International Airport, and the Central Luzon Link Expressway will likely support the expansion of industrial activities in Central Luzon. Meanwhile, the government’s focus on improving transportation infrastructure in Southern Luzon has made it even more attractive for residential end-users and businesses, including industrial locators. Transportation has and will become easier with the construction of public projects such as the Cavite-Laguna Expressway (CALAX) and with the completion of the North-South Commuter Railway (NSCR), Cavite-Batangas Expressway (CBEX), Bataan-Cavite Interlink Bridge, SLEX TR-4, and the LRT-1 Cavite Extension.
New industrial supply
Colliers projects the delivery of more than 1,200 hectares of new industrial supply from 2025 to 2028 in Central and Southern Luzon. National developers, including Aboitiz InfraCapital, Ayala Land, Robinsons Land, and Filinvest Land, continue to expand their industrial footprint across the country. Locators involved in the manufacture of electric vehicle parts, semiconductors, fiber cement, and electronics continue to occupy new industrial space in the country’s primary industrial corridors, central and south Luzon.
What stands out is that Central Luzon will likely account for about two-thirds of new industrial supply in the next three years. Aboitiz InfraCapital recently launched the first phase of TARI Estate in Tarlac, its latest industrial park project. Similar to its LIMA Estate in Batangas, the project will also house residential, office, retail, and hotel components. The company has taken a proactive stance in differentiating its industrial park-led masterplanned communities.
Aside from Pampanga and Tarlac, we also see the expansion of industrial activities in Bataan, Bulacan, and Subic. Colliers sees the region emerging as a key industrial hub outside the CALABA (Cavite-Laguna-Batangas) corridor, with massive investment pledges expected to boost exports and job creation.
New locators, fostering inclusive growth
To see national and regional players actively launching new residential, hotel, and industrial projects is definitely a positive development for the property sector. This ensures a more diverse Philippine property market–a market that is more than ready to seize opportunities and take an active role in fostering a more inclusive economic growth for the Philippines.
Among the manufacturers that announced their expansions in CALABA are semiconductor firms P.IMES Corp. and ATEC in Cavite Economic Zone and LISP 1, respectively; air conditioner manufacturer Kolin in First Cavite Industrial Estate; and printer manufacturer Fujifilm in Carmelray Industrial Park. Aboitiz InfraCapital’s LIMA Estate in Batangas also reported that 13 new companies are currently building facilities in its industrial park, which can generate up to 7,000 jobs. These manufacturing companies are from the industries of plastic molds, automotive parts, metal products, solar panel components, packaging materials, and dental products. Lopez Group’s First Industrial Township also continues to attract companies that specialize in manufacturing, assembly, logistics, and export-oriented operations.
Meanwhile, we also saw Central Luzon attracting higher-value manufacturers. Steel and fiber manufacturers Promet Asia and SHERA are set to open new facilities in TECO Industrial Park. PLG Prime Global Co., one of the world’s leading manufacturers of luggage and travel goods, is planning to resume its operations in Hermosa Ecozone Industrial Park in Bataan. Hollywood company Birns & Sawyer Inc. will invest up to USD17 million (PHP972 million) for the construction of a state-of-the-art soundstage facility in New Clark City. Other industrial parks in Central Luzon, which continue to attract locators, include Aboitiz InfraCapital’s TARI Estate, which recently turned over a 42-hectare lot to its anchor tenant, and Victoria Industrial Park, which expects up to 20 locators and plans to expand by up to 100 hectares over the next three years.
Diversity is key in stoking Philippine industrial property.
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