While the COVID-19 pandemic slowed many real estate sectors in the Philippines, demand for industrial and logistics space actually increased. Several experts believe the sector will remain a bright spot for the country’s property market in the coming months and possibly years.
This was one of the key takeaways from The Future of Logistics: Moving Beyond the Pandemic panel discussion organized by Santos Knight Frank.
“During the ECQ period, demand for industrial and logistics space rose for essential goods. In the following months, we expect demand to be more stable compared to the other real estate sectors. This demand is encouraged by the shift to e-commerce and the subsequent effects on demand for logistics, cold chain, warehouse, and other industrial services,” Kash Salvador, Santos Knight Frank Associate Director of Investment & Capital Markets, stated.
Health and wellness now, manufacturing in the future
According to William B. Chiongbian II, Group President & CEO of Fast Logistics Group, the Philippine logistics industry is in a prime position to support growing demand for health and wellness products.
“The quality of food will matter, and health and wellness will start to take a front seat in a developing country like the Philippines. With the right recipes from entrepreneurs, local government, and delivery enhanced by information technology, the industrial real estate infrastructure will be in the right place,” Chiongbian said.
Looking ahead, the Philippines could become a manufacturing destination in Asia as long as the industrial sector receives the proper support.
“With the right real estate infrastructure and support from the government, we’ve got to act together within the industrial sector that the Philippines is still one of the best manufacturing destinations. We need to work together to enhance what this country has to offer,” Chito Zaldarriaga, President of the Philippine Ecozone Association (Philea), explained during the discussion.
Industrial sector outlook remains positive overall
The industrial sector is expected to remain resilient moving forward. Howver it is important for those in the sector to rethink strategies in order to best take advantage of new opportunities that arose from the COVID-19 crisis.
“The industrial sector is all about the basics: basic space, food security, storage, and all the things you need in a crisis. This crisis is a realization that people are always going to need the industrial and logistics sector, and there is huge opportunity here,” Rick Santos, Chairman & CEO of Santos Knight Frank, noted.
