CAVITE accounted for the largest share of industrial and logistics demand in the Cavite-Laguna-Batangas (CALABA) corridor in the first quarter (Q1), but CBRE Philippines said the province needs more Philippine Economic Zone Authority (PEZA)-accredited facilities to support occupiers relocating supply chains.
In its start-of-year market report, CBRE said the CALABA industrial market posted a 7.6% overall vacancy rate. Cavite recorded the lowest vacancy at 5.2%, followed by Batangas at 5.5% and Laguna at 11.7%.
Manufacturing occupiers accounted for 51% of total first-quarter industrial demand, while distribution and logistics users made up 43%.
Cavite led demand with 30,120 square meters (sq.m.) of transactions, followed by Batangas with 14,120 sq.m. and Laguna with 6,520 sq.m.
The largest transaction in the quarter was a 14,380-sq.m. lease by a halal food exporter at Welborne Industrial Park in Carmona, Cavite.
Other major Cavite transactions included Triton Industrial Plastic Manufacturing Corp.’s 6,950-sq.m. lease in Silang and a 3,050-sq.m. lease by a solar energy distributor in Carmona.
Despite the strong take-up, CBRE flagged a supply mismatch in Cavite, noting that “47% of the warehouse supply is more than 10 years old,” while “only 26% of current vacancy are within PEZA industrial parks.”
The report added that occupiers relocating supply chains are expected to prioritize accredited sites, as “PEZA-accredited facilities provide duty-free access to production inputs,” making them more attractive to manufacturers.
CBRE said developers should accelerate the delivery of compliant facilities, noting that “a Cavite build-to-suit project for PEZA-accredited occupiers is the sharpest play.”
The consultancy also said government spending could support the sector in the second half, citing expectations that “infrastructure-related activity could increase demand for warehousing, staging yards, and logistics facilities.” —Juliana Chloe A. Gonzales
