Colliers projects the delivery of almost 400 hectares of new industrial space in the CALABA (Cavite, Laguna, Batangas) corridor from 2025 to 2027, providing fresh supply to meet rising demand by the manufacturing sector.
Of that figure, 260 hectares will be added this year, and another 80 hectares each in 2026 and 2027.
In a report posted on its website, Colliers said developers are also expanding their industrial footprint in Central Luzon particularly Pampanga, Tarlac, and Bataan.
Colliers said the new industrial spaces will come from the expansion of Hermosa Economic Zone in Bataan and of the expansion of the Light Industry & Science Park (LISP) 3 in Sto. Tomas, Batangas and LISP 4 in Malvar, Batangas being developed by Science Park of the Philippines Inc. (SPPI); the new TARI Estate by Aboitiz InfraCapital in Tarlac; Batangas Technopark of Ayala and; and the National Food Hub in Clark.
Manufacturing drives demand
Colliers said some of the industrial parks launched by private property firms are expected to be completed in the next two to three years.
It did not identify these projects but said SPPI alone will develop a 100-hectareindustrial park in New Clark City that will cater to
companies engaged in food production, textiles, automotive parts, electric vehicles, semiconductors, and data centers.
Colliers cited a report of the Philippine Economic Zone Authority (PEZA) which said the government has approved the establishment of 27 new economic zones (ecozones) since 2023 valued at P9.2 billion.
Colliers said the PEZA report showed these new ecozones cover information technology, electronics, and manufacturing industrial parks.
Citing news reports, Colliers said EV battery manufacturer StB Giga Factory disclosed plans to set up two more sites in Clark after their first facility in Filinvest Innovation Park in Tarlac.
Colliers also said South Korean e-vehicle firm LSC Emon will also open a facility in Malvar, Batangas which will manufacture e-jeepneys, e-mini buses, and two- and three-wheeled EVs.
Joey Bondoc, head of research at Colliers, said in an interview Central Luzon is particularly capturing high-value manufacturing like semiconductor
Colliers also sees the cold storage sector partly driving the demand for industrial space in the country.
Colliers cited reports which said Mets Logistics received P7 billion of investments for the expansion of its cold storage facilities across the Philippines while Ayala’s ALogis Artico
is also planning to double its cold storage capacity to 20,300 pallets by 2025.
New locators
Colliers said among the new industrial locators that recently opened new facilities are Aromate in LISP 3, I.E.
Medica in Cavite Technopark, and TDK Corp. in Laguna Technopark. Cosmetics and beauty products manufacturer, L’Oréal also inaugurated its new distribution center in Calamba, Laguna.
“In our view, these (industrial spaces) should support the government’s push for industrialization and provide opportunities for industrial locators and manufacturers planning to expand in the Philippines major industrial corridors,” said Bondoc.
Vacancy, lease rates to go up
With the fresh supply of industrial spaces, Colliers sees vacancy to marginally rise to 8 percent this year from 6.5 percent in 2024.
“The rise in vacancy should be partly tamed by the expansion of manufacturers from the semiconductors, electric vehicles (EV) and automotive components, and food and beverage (F&B) sectors,” Colliers said.
The property consultancy also forecasts land leasehold and warehouse lease rates to grow at flattish pace over the next 12 months.
“In our view, the substantial supply of new industrial space in CALABA as well as in Central Luzon should provide potential locators with more options and opportunities to haggle for more competitive rents and concession,” Colliers added.
