E-Commerce Demand Drives Laguna Warehouse Lease, Savills Says
Key Takeaways
- •Savills Philippines identified a 22,000-square-meter logistics lease in Laguna as the country's largest industrial warehouse transaction in the first half of 2026.
- •Rising e-commerce volumes and demand for faster last-mile delivery underpinned the deal, with operators increasingly favoring facilities that support sorting, inventory turnover, and dispatch speed over storage capacity alone.
- •Laguna recorded 54,000 square meters of notable industrial leasing transactions in the first half, and the Cavite-Laguna-Batangas corridor accounted for 80% of total industrial leasing during the period.
- •Savills' first-half 2026 Industrial Market Report projects 152,000 square meters of new industrial space nationally this year, a roughly two-thirds contraction from the 450,000 square meters completed in 2025.
- •Savills warned in September that industrial hubs with limited power-grid capacity risk losing projects to locations with greater electricity availability as power supply becomes a bigger factor in site selection.
Rising e-commerce volumes and demand for faster last-mile delivery underpinned what Savills Philippines described as the country's largest industrial warehouse transaction in the first half of 2026.
The deal involved a 22,000-square-meter (sq.m.) logistics lease in Laguna, which the property consultancy said was the largest single warehouse commitment it tracked across South Luzon's industrial corridor during the period.
Just south of Metro Manila, Laguna logged 54,000 sq.m. of notable industrial leasing transactions in the first half, with logistics and e-commerce activity concentrated in the province, Savills said in a statement on Tuesday.
"Occupiers in the logistics space continue to prioritize locations that offer both scale and proximity to key consumer markets, and Laguna remains well positioned to meet that demand," said Quirino Teo, Jr., executive director for investment services at Savills.
According to the consultancy, logistics operators increasingly favor facilities that support sorting, inventory turnover, and dispatch speed rather than storage capacity alone.
"Sorting, dispatch speed, and inventory turnover are now central to site selection, and this transaction is a clear example of that trend playing out in the market," said Early Orolfo, associate director for investments at Savills.
Savills' first-half 2026 Industrial Market Report projects that the national construction pipeline will deliver 152,000 sq.m. of new industrial space this year, down from the 450,000 sq.m. completed in 2025 — a contraction of roughly two-thirds.
The Cavite-Laguna-Batangas corridor accounted for 80% of total industrial leasing transactions in the first half, according to Savills. The consultancy said logistics and e-commerce activity was concentrated in Laguna, which it described as a growing fulfillment and distribution hub in South Luzon.
In September, Savills warned that industrial hubs with limited power-grid capacity risk losing projects to locations with greater electricity availability, as power supply has become a bigger factor in site selection — making power availability one of the watch points for hubs across the corridor as the year's remaining supply comes online.
— Juliana Chloe A. Gonzales
Source: BusinessWorld — E-commerce demand drives Laguna warehouse lease — Savills
