PROPERTY consultant Colliers projected greater take-up of industrial space and warehouses once investment pledges made during President Ferdinand R. Marcos, Jr.’s overseas trips materialize.
Joey Roi Bondoc, director for research at Colliers, said that industrial park developers and investment promotion agencies’ (IPAs) optimism that the investors will follow through soon will result in greater take-up in industrial parks.
“The government’s move to diversify sources of foreign investment also bodes well for the industrial sector especially if this diversification strategy results in attraction of more high-value manufacturing investments such as semiconductors,” Mr. Bondoc added.
As of December, the Department of Trade and Industry said the President’s travels generated pledges of $72.2 billion across 148 projects, 46 of which ($14.2 billion) are already operating, registered with an IPA, or are in some other stage of implementation.
Colliers said that the realization of the investments will help in improving the take-up in industrial spaces as vacancies are expected to rise to 7% in 2024.
Meanwhile, Colliers sees an average 4.5% vacancy rate from 2024 through 2028.
“From 2024 to 2026, we expect the average annual delivery of 120 hectares of new industrial supply in Calaba (Cavite, Laguna, Batangas) and Central Luzon,” Colliers said.
“Among the industrial parks likely to be completed include Batangas Technopark, Filinvest Park-Ciudad de Calamba, and the expansions of Cavite and Pampanga Technopark,” it added.
Colliers also said that diversification of investment sources could also lead to the expansion of the industrial sector.
“Colliers believes that property firms should diversify as they consider expanding their industrial footprint,” it said.
“Aside from traditional investment partners such as the US and Japan, industrial park developers should remain aggressive in enticing investments from non-traditional sources of investments including Taiwan and Europe,” it added.
It said the US CHIPS and Science Act as well as the ongoing abandonment of China by manufacturers could further support the Philippine industrial sector’s expansion. — Justine Irish D. Tabile