Central Luzon is becoming a preferred hub for industrial park development in the country. This is according to leading diversified professional services and
investment management firm Colliers (NASDAQ and TSX: CIGI), who attributes this to improving infrastructure connectivity and the rise of new industrial spaces in the region, brought on by the development of more integrated communities.
“Central Luzon is also one of the fastest growing regions, making it a viable consumer base for manufactured goods. Colliers believes that property firms should continue developing industrial parks and modernizing warehouses in Central Luzon to capture the region’s economic expansion and continued industrial space take up from manufacturing locators,” said Joey Roi Bondoc Associate Director of Research, Colliers.
Among the national developers with industrial footprint in Central Luzon include Filinvest Land and Ayala Land. “We see more national and local developers following suit,” added Bondoc.
Colliers sees Central Luzon playing a vital role in attracting job-generating manufacturing investments. The region’s industrial parks and facilities are alternative options to traditional sites and warehouses located south of Luzon. The Department of Trade and Industry (DTI) is currently pitching Central Luzon as a manufacturing and logistics hub, highlighting growth opportunities in Pampanga’s New Clark City, Bataan’s Freeport Area, and Tarlac’s Luisita Industrial Park.
Singaporean firms are also keen on investing in the Filinvest Innovation Park in New Clark City. The first phase of the industrial hub is now accepting locators, particularly companies involved in logistics, e-commerce, light manufacturing, and data center operations.
Colliers recommends that developers and locators keep an eye on the completion of industrial parks and facilities in Central Luzon. From 2022 to 2024, we see the completion of about 307 hectares of new industrial space particularly in Pampanga, Tarlac, and Zambales.
Colliers believes that the modernization of Clark International Airport should raise the attractiveness of Central Luzon for more manufacturing and logistics investments. The development of passenger railways such as the Manila–Clark Railway, as well as cargo railway systems should also support the
expansion of industrial activities in the region. Other big-ticket infrastructure projects that will likely spur growth in Central Luzon include Skyway 3 and Central Luzon Link Expressway (CLLEX).
The completion of the new Clark International Airport should decongest the Ninoy Aquino International Airport (NAIA). The expansion has a capacity of about 8 million passengers annually, up from 4.2 million previously. The 106-kilometer Manila–Clark Railway will have 17 stations that will transverse from Tutuban in downtown Manila to New Clark City. It will significantly reduce travel time from Manila to Clark from 2 hours to just 55 minutes and could accommodate about 350,000 passengers daily. Skyway Stage 3 is an elevated expressway from Sen. Gil Puyat Ave. (Buendia Ave.) in Makati to the North Luzon Expressway (NLEX) in Balintawak, Quezon City. The project aims to decongest traffic in major roads including EDSA by as much as 55,000 vehicles daily. It is expected to cut travel time from Buendia Ave. to Balintawak from 2 hours to just 15 to 20 minutes. Lastly, the CLLEX will improve connectivity between major provinces in Central Luzon. The 66-kilometer expressway will connect Tarlac City to San Jose, Nueva Ecija.