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Philippine Industrial Market Spotlight

Claro Cordero Jr. • 27/01/2021

Philippine Industrial Market Spotlight

The simultaneous impacts of the novel Coronavirus disease 2019 (COVID-19) pandemic to various economic sectors including domestic spending, tourism, remittances,  external trade, among others, halted the Philippines’ promising economic growth momentum which is among Asia Pacific’s fastest in the pre-COVID 19 era. While majority of the businesses have since been allowed to operate (albeit with health protocols in place) under the “new normal”, the imposition of stringent community quarantine measures forced Gross Domestic Product (GDP) growth to contract during the first three quarters of 2020. Whilst the Q3 2020 contraction of -11.5% YoY is not as severe as -16.9% YoY recorded in Q2 2020, economic slowdown is expected to persist in the medium-term due the slow recovery of consumer confidence amid high unemployment and growth uncertainties on a global scale. 

Bolstered by increased requirements for warehouse facilities to cater to essential industries and e-commerce companies, the industrial segment withstands the disturbances in the manufacturing and export sectors particularly in the semiconductors and electronics industry. While the aforementioned market uncertainties kept vacancy rates at healthy levels, the continued disruptions to the global supply chain hold-off sharper increases in the rental rates of standard built facilities (SFBs). 

Philippine Industrial Market Spotlight explores the country’s industrial segment with a focus on two of the country’s emerging industrial hubs – Central Luzon and CALABA regions. As the battle with the effects of pandemic-induced global uncertainties continues, we examine the performance and prospects of growth that are presented to the Philippines’ industrial segment. Click here to download the report.  


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