PH Real Estate Gearing Up For Logistics

Santos Knight Frank’s latest report tackled on the importance of logistics and how it will play a major role in the real estate industry in the Philippine. This will help developers to grow their business despite the rise of the ecommerce era. Many logistics companies are already offering managed asset recovery services and many other services which could help a lot of industries.

According to the report entitled “The Future of Logistics: A Real Estate Perspective”, the author highlighted how the logistics industry is proving to be growing together with the economy and the real estate market.

Santos Knight Frank said that as of the moment, the evolution is quite huge to watch as many of the players in the market are starting to think about increasing their land values, altering the market dynamics, tacking challenges with transportation and rising the competition when it comes to feasibility studies as well as formulating strategy. Technology is also a crucial factor because it will help logistics as it conquers the entire country

New areas in the region will present to be suitable in battling out logistics power struggle which will be aided by the developments in terms of access and the improving infrastructures. The leading conglomerates in the Philippines are already starting to build their own industrial estates and they have already plunged in into the logistics market.

For instance, Ayala Land Inc. has already expanded into warehouse facilities and development of industrial parks via partnership with Prime Orion Philippines. Recently, the latter already took on a new name Ayala Land Logistics Holdings, Corp. It was only two months ago when the logistics unit started the construction of the Laguindingan Technopark worth PHP 172 billion.

There are still many challenges which need to be conquered for logistics to dominate the country. While other logistics firm in other parts of the world is able to provide managed asset recovery services, the country still needs to see that the logistics companies will be able to meet the demand of the consumers for last-mile deliveries. There is also the need for them to expand their warehouse facilities around the Metro Manila and the make sure that they have distribution centers located around the city.


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