Guess which area records the lowest industrial warehouse vacancy in the Philippines

Industrial warehouses near Metro Manila continue to see strong occupancy.

South Luzon’s industrial sector continues to attract strong demand, with provinces such as Laguna, Cavite, and Batangas showing exceptionally low vacancy rates, according to Savills Philippines.

In its latest market report, Savills highlighted that Batangas leads the country in warehouse occupancy, recording a remarkably low vacancy rate of 0.2%, reflecting sustained demand for modern facilities. Its strategic location near Batangas Port and convenient access to Metro Manila are cited as major factors driving consistent interest from logistics and manufacturing locators.

Laguna also maintains tight industrial conditions, with a vacancy rate of just 1.6%, supported by well-developed infrastructure, strong connectivity, and a diverse mix of warehouse facilities. Savills reported that Laguna absorbed over 90,000 sq m of industrial space in 2025, the highest in the country, reinforcing its reputation as a prime hub for companies prioritizing proximity to Metro Manila.

By contrast, Cavite’s vacancy rate of 2.4% is slightly higher, reflecting older industrial estates that are beginning to face competition from newer developments in neighboring provinces. Nevertheless, Cavite remains a critical industrial location, supported by established estates and mature infrastructure.

In North Luzon, Pampanga and Bulacan are emerging as alternative industrial corridors, though vacancy levels remain higher than their southern counterparts. Pampanga posted a vacancy rate of 3.1%, driven by newer developments such as Pampanga Technopark and Global Aseana Business Park. Bulacan’s industrial stock continues to attract interest, albeit with modest absorption rates as locators gradually explore northern expansion options.

Savills noted that the preference for Southern Luzon remains strong, with most locators prioritizing established hubs that offer logistical advantages and ready access to major manufacturing and export facilities.