Logistics providers are moving into more advanced facilities as they position themselves in the Philippine market ahead of a potential resurgence in the country’s manufacturing sector, according to a report by property management and consultancy firm Santos Knight Frank (SKF).
SKF Chairman and CEO Rick Santos said the logistics sector is experiencing renewed interest following the Trump administration’s grant of favorable tariff rates on Philippine exports — including agricultural products — to the U.S.
Santos attributed this growing interest to the strengthened relations between the Philippines and the U.S., which he said has allowed the country to receive preferential tariffs.
“This is very good for manufacturing,” he said, noting that foreign companies are preparing for the potential expansion of manufacturing operations in the Philippines by positioning themselves for warehousing and cold chain facilities.
Santos also highlighted Central Luzon as an emerging hub of industrial activity, driven by anticipation surrounding the Luzon Economic Corridor (LEC). The LEC is a trilateral initiative involving the Philippines, the United States, and Japan, with both the U.S. and Japan providing funding and support. The project includes coordinated investments in major infrastructure such as the Subic-Clark-Manila-Batangas railway.
With these developments, the industrial property market is rapidly shifting from generic dry warehouses to more specialized, sophisticated facilities such as cold storage, data centers, and high-tech green manufacturing sites.
Government incentives under the proposed special investment priority plan are also targeted at accelerating growth in specialized industrial logistics and manufacturing.
While Cavite, Laguna, and Batangas have long been the country’s primary industrial corridor, the SKF report indicated significant growth in Central Luzon as the LEC advances.
Toby Miranda, SKF director for investment and capital markets, noted that ongoing developments in the logistics sector are becoming a key driver of the broader industrial property market. He said inquiries from Japanese and U.S. logistics providers looking to expand in Central Luzon have been increasing.
In an earlier report, Miranda cited multiple cold chain investments expected in 2025, including Royal Cargo Storage in Plaridel, Bulacan with a 22,000-pallet capacity; New Pioneer Cold Storage in Manila Port with 5,000 pallet positions; and the GMAC facility in Davao with 11,800 pallet positions.
He added that Singapore-based Canopy Investments has acquired shares in Metz Cold Storage to support the expansion of its Philippine operations.
