THE PHILIPPINES might have at the least 50 million square meters (sq.m.) of commercial space by 2035, with an estimated average price of P30,000 per sq.m., to accommodate surging demand from the manufacturing, logistics, and data center sectors, in keeping with industrial real estate consultancy firm PRIME Philippines.
“By 2035, the foremost backbone of the Philippine economy can be the commercial sector. Industrial real estate is not any longer just an asset — it’s the important thing to unlocking the Philippines’ economic future. The demand is here; the provision must follow,” PRIME Philippines Founder and Chief Executive Officer Jet Yu said during a briefing on Wednesday.
Warehouse supply grew by 4% to 37.6 million sq.m. in 2024, driven by latest developments in Laguna, Batangas, and Cebu.
PRIME Philippines projected that provide would breach 40 million sq.m. this yr, with upcoming expansions in Rizal, Cavite, Laguna, Pampanga, Cebu, and Davao.
Mr. Yu noted that a couple of third of the projected demand will come from the event of knowledge centers, with over 100 data centers expected to go live within the country inside the following three years.
“The 50 million sq.m. is a conservative-to-optimistic estimate. In only one or two years, we’re going to see many countries, including the Philippines, localizing and housing their very own data domestically,” he said.
Mr. Yu added that the country’s manufacturing and logistics sectors are also expected to fuel industrial space demand.
“There was a rapid decentralization across the Philippines. Logistics players have strategically positioned themselves over the past three to 4 years,” he said.
“On manufacturing, when many corporations from China sought to diversify their operations to other ASEAN neighbors, we somewhat missed that chance. Nonetheless, over the following ten years, we expect significant demand,” he added.
Meanwhile, Mr. Yu said the country’s manufacturing sector could proceed to thrive amid geopolitical tensions.
“So long as we play it strategically and thoroughly, it’s protected to say that the manufacturing sector will proceed to thrive within the Philippines,” he said.
“In 2025 alone, we’ve already received interest from corporations seeking to expand their existing manufacturing facilities within the Philippines. These are secondary hubs as a way for manufacturers to diversify and mitigate potential risks,” he added.
The USA paused its planned 25% tariffs on Mexico and China in exchange for concessions on border and crime enforcement.
Nonetheless, US President Donald J. Trump said he isn’t rushing efforts to defuse a trade war with China, which was triggered by a ten% tariff on all Chinese imports.
In response, China imposed targeted tariffs on US imports and placed several corporations, including Google, on notice for possible sanctions. — Revin Mikhael D. Ochave
