WAREHOUSING is another growth driver that is seen to bolster Cebu’s real estate boom.
Joey Bondoc, senior research manager at Colliers International Philippines (Colliers), said there is a market demand for warehouses operated by third-party providers in Cebu, on the back of the e-commerce buildup and expansion of industrial businesses.
“What we’re seeing is the modernization of warehouses because of e-commerce. In Southern Luzon and Clark, where the industrial parks are located, we see a more aggressive completion of warehouses,” said Bondoc.
He noted that because of the lack of third-party providers, companies are forced to build their own storage facilities.
“I won’t be surprised if I’ll see a similar trend here in Cebu,” Bondoc said.
Besides warehouses, Colliers also sees high demand for container yard spaces in Cebu.
Because of this, the firm sees industrial land values in the northern parts of Mandaue, Consolacion and Lilo-an growing by at least 10 percent annually over the next two to three years with the transfer of Cebu International Port to Consolacion, Cebu.
Currently, the price range in Mandaue is P25,000 per square meter (sq.m) or US$500 per sq.m. while prices in Consolacion and Lilo-an range from 10,000 or $200 to P30,000 or $600.
“The increase in rates will be supported by rising demand from logistics and warehousing firms due mainly to expansion of e-commerce platforms like Lazada and Zalora in Cebu,” said the research firm.
Industries like the food and beverage (F&B) and household products require warehouses to store their daily supplies, which demand is supported by high purchasing power of consumers.
Earlier, Oakridge Realty Development Corp. chief executive officer Edmun Liu bared the group’s plans for development in the industrial segment.
Liu said the thrust of the government to push progress for the countryside is showing bright prospects, particularly for distribution business.
“It’s one thing to talk about progress in the countryside but if you’re not able to deliver the goods there, that will be a problem. So that’s why distribution centers, warehouse space and the ability to move goods in and out of the country--that’s a very powerful need of the market,” he said. JOB WITH KOC