Davao del Sur warehouse demand third-strongest in first quarter — PRIME

DAVAO DEL SUR was the third-largest market in terms of demand for warehouse space, according to property consultancy PRIME Philippines.

Demand in Davao del Sur hit 15,500 square meters (sq.m.) in the first quarter, according to PRIME’s Beyond the Metro: The Decentralization Playbook special market report.

PRIME said Davao Del Sur warehouse demand exceeded that of Cavite, with demand of 14,800 sq.m., and Metro Manila, with 9,400 sq.m.

The two top markets for warehouse space were Laguna (34,800 sq.m.) and Bulacan (30,400 sq.m.), it said.

Demand from manufacturers was 10,000 sq.m. in Davao del Sur, with service activities accounting for 5,500 sq.m.

National demand was estimated at 115,500 sq.m., down from 130,300 sq.m. in the fourth quarter of 2025. The first quarter estimates are well off the year-earlier level of 776,400 sq.m. posted during the first quarter of 2025.

First-quarter warehouse occupancy in Davao del Sur was 97.66%, behind only Cebu (97.73%) and Bulacan (98.39%.) Lease rates were between P110 and P205 per sq.m., averaging P156 per sq.m., it said.

“Tenants are (considering shifting to) Grade A facilities to support day-to-day logistics operations, prizing operational efficiency,” PRIME said. — Juliana Chloe A. Gonzales