Metro Manila (CNN Philippines, December 23) — With the pandemic further boosting the growing popularity of online shopping, the logistics sector might be set to reap the benefits of the shift to cashless transactions.
“With increasing competition in the retail landscape, mall operators need to differentiate and partner with logistics and warehousing providers to keep business afloat,” noted Colliers International Philippines in its 2021 outlook report as retailers further tap the steadily growing e-commerce market.
Given this, the property consultancy firm forecasts a “healthy demand” for warehouses in the coming year, also noting the segment already accounts for 70 percent of the country’s economic output along with the growth in storage investments in the Philippines.
Citing data from the Philippine Statistics Authority, Colliers said 33 percent or ₱14.8 billion of the total foreign investments approved during the first half of 2020 were for transportation and storage.
“Developers should maximize opportunities by further adopting Industry 4.0 practices to modernize warehouses, building more cold storage facilities, exploring co-working and flexible warehousing, and converting vacant mall and office spaces into fulfillment centres,” added the consultancy firm.
For instance, some mall operators have declared plans to turn some of their retail spaces into microwarehouses as their tenants transition to e-commerce, effectively fueling demand for those facilities. Colliers likewise cited malls’ efforts to introduce contactless options for customers, balancing product sales and lessening the risk of COVID-19 transmission as they cope with decreased foot traffic amid the pandemic.
Metro Manila still houses over half of the country’s leasable warehouse supply, comprising an estimated 825,800 square meters (sq.m.), said Colliers, noting Valenzuela holds 30 percent of the metro’s leasable space.
The capital region is closely followed by the Cavite-Laguna-Batangas corridor, which has an estimated 816,100 sq.m., then Pampanga, which has around 73,600 sq.m.
“Starting in Q4 2020, we estimate that around 179,800 sq meters (1.9 million sq feet) of leasable warehouse space will likely be offered in Metro Manila with the completion of projects such as Juan Luna Logistics, Recto Logistics Center, and Rosan Logistics Center by Anchor Land in Binondo,” Colliers added.
The property consultancy firm likewise identified Quezon City, Manila, Pasig, Makati, Pasay, Muntinlupa and Marikina for possible locations for facilities.
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