COLLIERS RADAR INDUSTRIAL | RESEARCH | MANILA | 10 DECEMBER 2020 Joey Roi Bondoc Manager | Research | Philippines +63 2 8858 9057
[email protected] Calvin Javiniar Senior Director | Capital Markets and Investment Services | Philippines +63 2 8863 4167
[email protected] CAPTURING WAREHOUSING BOOM Developers pivot to seize lockdown economy and household spending- driven opportunities in logistics and warehousing COLLIERS RADAR LOGISTICSINDUSTRIAL | |RESEARCH RESEARCH | |MANILA MANILA | |15 10 DECEMBER DECEMBER 2019 2020 Summary & Recommendations PHP 141.2 billion* 38% Colliers Philippines believes that the Total value of InstaPay transactions from Share of food and non-alcoholic beverages pandemic has caused a significant January to August 2020. The emergence of a in the household final consumption interruption to the long run growth of the lockdown economy has resulted in an aggressive expenditure in 9M 2020, up from 34% in use of online payment channels. 2019. Demand for warehouses and logistics Philippines’ consumer-driven economy. services will likely be driven by a personal Note: USD2.9 billion. InstaPay is an electronic fund transfer In our view, the COVID-19-induced service governed by Philippine Payment Management Inc. consumption-driven Philippine economy. interruptions have altered the immediacy in under the oversight of the Bangko Sentral ng Pilipinas. which retailers must innovate to remain relevant. The continued growth of the e- PHP118.4 billion* PHP220-PHP570* commerce sector and emergence of a Range of average monthly rental rates of traditional lockdown economy have only compelled Gross value added in the warehousing warehouses in Metro Manila (per sq metre). This is mall operators and retailers to aggressively sector in 9M 2020.