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Warehousing and logistics facilities in Bulacan, Pampanga and Pangasinan are set to benefit from the steady influx of capital into the Philippine industrial sector, according to PRIME Philippines
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The country’s emerging advantage in the global semiconductor supply chain also bodes well for the warehousing sector
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As of 2024, the Philippines had approximately 40 million square meters of warehouse supply, with 75% concentrated in key Luzon provinces such as Cavite, Laguna, Batangas, Bulacan, Pampanga and Pangasinan
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With the third-largest warehouse supply in the country, Bulacan captured 18.33% of nationwide demand in 2024
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Pampanga accounted for 3.66% of nationwide warehouse demand as of 2024 but its occupancy rates have consistently pushed above 95% for the last three years
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Growing interest of logistics and fast-moving consumer goods sectors in Pangasinan may boost the province’s nationwide warehousing demand, currently at 2%
Warehousing and logistics facilities in Bulacan, Pampanga and Pangasinan are set to benefit from the steady influx of capital into the Philippine industrial sector, as well as the continued rise in technology exports, according to a study by real estate service company PRIME Philippines. The three provinces lie within one to three hours north of Metro Manila, making them an ideal location for businesses looking to expand beyond the metro, and are within short driving distance to Metro Clark, rendering them key players in the growing logistics hub’s ecosystem.
Based on statistics gathered by PRIME Philippines, as of 2024, the Philippines had approximately 40 million square meters of warehouse supply, with 75% concentrated in key Luzon provinces such as Cavite, Laguna, Batangas, Bulacan, Pampanga, and Pangasinan. Of the 75%, 35% of warehouse supply is located in the northern provinces and 65% in the Cavite, Laguna, and Batangas (CALABA) region. Despite the large gap in supply, demand is evenly split between the two areas, with CALABA capturing 24.4% of the demand, compared to 23.85% for the northern provinces.
A storage-full of opportunities
PRIME Philippines cites two factors for the growing demand for warehousing in the country. First is growing investments in the manufacturing sector, which has consistently captured the lion’s share of total net foreign direct investments for the past three years, at 81.8% or $1.46 billion. The sector outpaces all others despite making up just 29.1% of the country’s GDP in 2024, well below the service sector’s 62.9% share (Philippine Statistics Authority).
Over the coming years, manufacturing growth is expected to be boosted further by increased use of technology such as artificial intelligence, raising overall operational efficiencies.
Second is the country’s emerging advantage in the global semiconductor supply chain. According to the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI), semiconductors accounted for 55% of the country’s total exports from January to September 2024. While SEIPI initially projected flat export growth for 2025, recent geopolitical shifts may turn the tide in the country’s favor. Following U.S. President Donald Trump’s directive to cut $52.7 billion in subsidies to American semiconductor firms, coupled with the wave of new tariffs imposed by the U.S. on technology imports, many U.S. companies are considering relocating their operations overseas. This could present a strategic opportunity for the Philippines. For example, PRIME Philippines is currently in talks with one of the largest American microchip companies eyeing an expansion in Clark.
Bulacan: most sought-after warehouse destination in 2024
With the third-largest warehouse supply in the country, Bulacan captured 18.33% of nationwide demand in 2024. Outside of Meycauayan, the warehouse footprint in Bulacan is evenly distributed across northern and southern cities. Unlike in most other provinces, demand is widespread, with the top cities being Meycauayan, Balagtas, Guiguinto, Marilao, and Pulilan. By industry, Bulacan is a top choice for logistics companies, as well as for other key players such as wholesale & retail trade companies and manufacturers. This is primarily due to its proximity to Metro Manila. Since 2022, the overall occupancy rate of Bulacan warehouses has not gone lower than 95%, with the rate even floating above 97% in 2024.
Recent infrastructure completions have helped the case for Bulacan as a top warehousing destination. The 3rd Phase of the Arterial Bypass Road traversing Balagtas to San Rafael, for example, is expected to spur development along its path. More significantly, the eventual completion of the New Manila International Airport in Bulacan should help ignite the development of supporting infrastructure, including warehousing, and, indeed, the wider Bulacan province.
Pampanga: poised to be top gainer from Metro Clark development
Pampanga is currently viewed as a support hub for the northern provinces, ranking second to Bulacan in tenant priority. However, a growing concentration of pipeline warehouse developments in northern cities such as Porac and Mabalacat hints at the rise of Metro Clark as a major trade area outside Metro Manila.
Key developments are set to fuel this transformation. The Clark National Food Hub should drive demand for cold storage and food-grade warehouses to support food logistics, while Clark Aviation Capital aims to attract aviation, cargo, and logistics investments, increasing the need for air cargo and integrated logistics hubs. Global logistics player UPS is expanding its operations in Clark International Airport, strengthening its express logistics and e-commerce fulfillment services. This should help generate further demand for last-mile delivery hubs in Clark.
Pangasinan: access point to North Luzon provinces
Pangasinan is geographically gifted: it sits in the center of North Luzon and is adjacent to several provinces, including Zambales, Tarlac, Nueva Ecija, Nueva Vizcaya, Benguet, and La Union. It has the adventage of extensive connective infrastructure via Tarlac-Pangasinan-La Union Expressway (TPLEX) and the Central Luzon Link Expressway (CLEX).
But while Pangasinan accounts for less than 2% of nationwide warehousing demand currently, signs show that this is about to change. Companies in both the logistics and fast-moving consumer goods (FMCG) sectors have signified interest in Pangasinan as a conduit to provinces further north of Luzon. Most recently, major industry players Shopee and O-save have opened warehouse hubs in the province.
Opportunities abound
Indeed, with infrastructure advancements and strategic investments reshaping the region, northern provinces are steadily carving out a larger role in the country’s warehousing and logistics sector. As businesses seek expansion beyond Metro Manila, these emerging industrial hubs offer untapped opportunities for developers and occupiers alike. The continued interest in Bulacan, alongside growing interest in Pampanga and Pangasinan, signals a broader shift toward decentralization—one that will define the future of the Philippine industrial landscape.
Author: PRIME Philippines
Disclaimer: This article contains information sourced from publicly available reports, official statements, and reputable news agencies. Proper credit has been given to original authors where applicable. Any direct quotes or references have been attributed accordingly.