Manila’s logistics sector continues to show remarkable performance, ranking 3rd across Asia Pacific in year-on-year rental growth, according to Knight Frank’s latest report.
This industrials sector posted an impressive 9.1% rental growth in 2024, although it marked a significant adjustment from the phenomenal 49.3% growth recorded the previous year.
Toby Miranda, SKF head and associate director for Investment and Capital Markets, said the significant slowdown in rental growth rate in 2024 only reflects a maturing market.
Miranda, however, said it is difficult to measure the footprint in this sector in terms of square meters as there are several individuals putting up their own warehousing facilities for their own use.
In terms of cold storage supply, SKF dat showed that Cebu emerged as a major cold storage hub in the country with capacity of 112,689 metric tons, followed by Metro Manila with 95,695 MT, General Santos City with 28,000 MT, Cavite with 22,184 MT, Cagayan de Oro with 10,849 MT and Davao with 4,906 MT.
Knight Frank’s report highlights a notable shift in market dynamics, with conditions transitioning from being landlord-favorable to more neutral conditions.
This shift comes as the logistics sector continues to be driven by strong demand for industrial and cold storage facilities, propelled by the rise of e-commerce, pharmaceuticals, and supply chain modernization.
Among the Asia Pacific countries, SKF data study showed that Singapore emerged with the highest growth in rental rate at 10.8% followed by Vietnam with 9.9%. Markets with negative growth rates include Shanghai at negative 15% and Beijing at negative 8.6%, and Bangkok at negative 0.5%.
