Property developers urged to expand industrial spaces

MANILA, Philippines — Property developers are being urged to capitalize on improving infrastructure connectivity in Central Luzon by expanding industrial spaces in the region, according to a property services firm.

In a statement yesterday, Colliers Philippines said Central Luzon has become a preferred hub for industrial park development in the country, mainly driven by its improving infrastructure connectivity.

“Central Luzon is also one of the fastest growing regions, making it a viable consumer base for manufactured goods. Colliers believes that property firms should continue developing industrial parks and modernizing warehouses in Central Luzon to capture the region’s economic expansion and continued industrial space take-up from manufacturing locators,” Colliers Philippines associate director of research Joey Roi Bondoc said.

Colliers said a number of national developers already have an industrial footprint in Central Luzon such as Filinvest Land and Ayala Land.

“We see more national and local developers following suit,” Bondoc said.

Colliers sees Central Luzon playing a vital role in attracting job-generating manufacturing investments.

It said the region’s industrial parks and facilities are alternative options to traditional sites and warehouses located south of Luzon.

Colliers said the Department of Trade and Industry (DTI) is pitching Central Luzon as a manufacturing and logistics hub, highlighting growth opportunities in Pampanga’s New Clark City, Bataan’s Freeport Area and Tarlac’s Luisita Industrial Park.

The property services firm also pointed out that Singaporean firms are also keen on investing in the Filinvest Innovation Park in New Clark City.

It said the first phase of the industrial hub is now accepting locators, particularly companies involved in logistics, e-commerce, light manufacturing and data center operations.

“Colliers recommends that developers and locators keep an eye on the completion of industrial parks and facilities in Central Luzon. From 2022 to 2024, we see the completion of about 307 hectares of new industrial space particularly in Pampanga, Tarlac and Zambales,” Colliers said.

The property services firm said the modernization of Clark International Airport should raise the attractiveness of Central Luzon for more manufacturing and logistics investments.

The completion of the new Clark International Airport should decongest the Ninoy Aquino International Airport (NAIA). The expansion has a capacity of about eight million passengers annually, up from 4.2 million previously,” Colliers said.

It said the development of passenger railways such as the Manila-Clark Railway as well as cargo railway systems should also support the expansion of industrial activities in the region.

The 106-kilometer Manila-Clark Railway will have 17 stations, from Tutuban in Divisoria, Manila to New Clark City. It will significantly reduce travel time from Manila to Clark from two hours to just 55 minutes and can accommodate about 350,000 passengers daily.

Other big-ticket infrastructure projects that will likely spur growth in Central Luzon include Skyway 3 and Central Luzon Link Expressway (CLLEX), according to Colliers.

Skyway Stage three is an elevated expressway from Sen. Gil Puyat Avenue (Buendia) in Makati to the North Luzon Expressway (NLEX) in Balintawak, Quezon City. The project aims to decongest traffic in major roads including EDSA by as much as 55,000 vehicles daily.

It is expected to cut travel time from Buendia to Balintawak from two hours to just 15 to 20 minutes.

Moreover, the CLLEX will improve connectivity between major provinces in Central Luzon. The 66-kilometer expressway will connect Tarlac City to San Jose, Nueva Ecija.