Philippine industrial warehouse stock expands 63% over the past decade

Supply increased from approximately 9.8m sqm in 2015 to 15.9m sqm by 2025.

The Philippines’ industrial and warehouse sector has recorded sustained expansion over the past decade, with total stock projected to grow by 63% between 2015 and 2025, reflecting resilient demand from logistics, manufacturing and distribution occupiers, according to Savills Philippines.

In its latest industrial market report, Savills said total industrial stock covered in the study increased from approximately 9.8 million sq m in 2015 to a projected 15.9 million sq m by 2025, underscoring a steady pace of project completions and continuous development activity across both established and emerging industrial locations.

Savills noted that new supply has been introduced consistently each year, highlighting the active participation of developers responding to occupier demand within key industrial estates nationwide. Even during the COVID-19 pandemic, industrial development activity remained relatively resilient.

“Projects already in advanced stages of construction prior to lockdowns continued to progress, while logistics and essential manufacturing operations faced fewer disruptions,” Savills said, adding that the rapid expansion of e-commerce during the pandemic period further fuelled demand for warehousing and distribution facilities.

While overall supply growth remains positive, Savills observed uneven development momentum across provinces, reflecting differing local market dynamics. The largest annual increase in new supply was recorded in 2024, exceeding 1 million sq m, driven primarily by major additions in Batangas and Laguna, reinforcing South Luzon’s position as the country’s primary industrial growth corridor.

Among established hubs, Laguna and Cavite continue to dominate industrial stock levels. Savills reported that Laguna remains the largest industrial market, with over 5.2 million sq m of stock, supported by ongoing expansions such as Filinvest Innovation Park – Ciudad de Calamba, where a 25-hectare growth phase is being developed for ready-built and built-to-suit facilities.

In Cavite, industrial activity remains anchored by the Cavite Economic Zone (CEZ) and further strengthened by the expansion of Cavite Technopark in Naic, which is progressing with its Phase 2B development spanning 20.2 hectares, Savills said.

Batangas has emerged as a key growth area, driven by expanding industrial estates, improving infrastructure and proximity to Batangas Port. Savills highlighted the province’s growing appeal as an alternative for locators seeking options outside the more mature Laguna and Cavite markets. Growth is being reinforced by the Phase 2 expansion of Batangas Technopark in Padre Garcia, adding 20.6 hectares, alongside continued development within LIMA Technology Center, one of Southern Luzon’s most active industrial zones.

Beyond the southern corridor, Savills pointed to rising industrial activity in the north. Bulacan leads the northern provinces in terms of upcoming supply, with approximately 227,000 sq m in the development pipeline. Of this, around 176,000 sq m is expected to be completed by Q4 2025, largely driven by warehouse projects in Jolly Industrial Park – Plaridel. An additional 20,000 sq m of known developments is expected by 2026.

With strong connectivity via NLEX and major infrastructure projects such as the New Manila International Airport, Savills said Bulacan is steadily positioning itself as a key industrial hub north of Metro Manila.

Meanwhile, Pampanga continues to post steady growth, supported by its strategic road networks and industrial parks located within or near the Clark Freeport Zone. Proximity to Clark International Airport enhances the province’s appeal to logistics and export-oriented occupiers requiring efficient air-freight connectivity.

Overall, Savills said the distribution of upcoming developments points to a broadening of industrial growth corridors, as developers increasingly look beyond traditional southern hubs toward northern provinces offering lower costs, improved accessibility and greater room for expansion.