The warehousing market grows steadily

In the recent Mid-Year Report by Lobien Realty Group (LRG), Associate Director and Chief Markets Officer Steph Ng projected that the Philippine warehousing market is expected to grow from $420 million by the year-end of 2025 to $680 million by the year 2033 at a compound annual growth rate of 54.2 percent. With the strong demand in logistics and supply chain, the country is fast becoming a key strategic hub in Southeast Asia.Associate Director and Chief Markets Officer Steph Ng p**media[29002]**“The warehousing market is primarily driven by the companies in the manufacturing, logistics, and E-commerce industries, supported by government initiatives,” said Ng. “They will continue to drive growth in the next five years, creating a strong demand for storage bases for distribution.”She also noted that the government’s policy reforms are attracting foreign direct investments in the logistics sector, where multi-national companies are establishing local distribution hubs and pushing demand for more modern warehouses.Ng also shared that with urban land prices continuing to increase, “investors are investing outside the cities where land is accessible but still affordable.” While warehouses in South Luzon, such as in the provinces of Calamba, Cavite, Batangas, and Laguna continue to thrive, Central Luzon is expected to remain a key hotspot with the boom of warehouses locating in Pangasinan, Tarlac, Pampanga, Bataan, and Nueva Ecija.In particular, Ng mentioned Tarlac province as a key investment hub. “Last year, Filinvest Land, Inc. became the first industrial developer in the New Clark City in Capas, Tarlac, when they launched the 288-hectare Filinvest New Clark City township project. This year, Science Park of the Philippines Inc. partnered with the Bases Conversion and Development Authority in a 50-year lease to develop a 100-hectare industrial park, which will generate more than 30,000 jobs. We also have the 36-hectare Victoria Industrial Park in Victoria, Tarlac, the country's first dedicated pharmaceutical economic zone.”Ng cited that the country has a total of 425 economic zones; 297 are located in Luzon, 84 in Visayas, and 41 in Mindanao.“These ecozones are vital in the Philippine economy, as they contribute 16 percent of the current GDP,” underscored Ng. “In the first half of this year, the Marcos administration has already approved four new ecozones, two manufacturing expansion sites in Batangas, headed by Aboitiz, and two IT parks, one of which is Megaworld’s Upper East IT Park in Bacolod, which aims to attract more than a billion in investments,” she added.This year, the Philippine Economic Zone Authority is also targeting 34 more ecozones, which will focus on Central, Cebu, and Mindanao.As industrial activity and logistics expand outside the country, the government is also ramping up infrastructure projects to back up the regional growth. “Government support in completing infrastructure projects will be crucial to expanding supply beyond Metro Manila,” Ng mentioned.Investors are looking forward to the SCTEX Interchange that will link Bataan to Clark Freeport in New Clark City and Subic Bay, and the Bataan – Cavite Interlink Bridge that will connect North and South Luzon. The Subic-Clark-Manila-Batangas Railway project is a freight railway that will pass through the country’s three major ports.