Strong consumption and increased disposable income will strengthen the the retail sector, one of the significant drivers of the gross domestic product.
Santos Knight Frank Inc. said in a property forecast for 2017 strong consumption would drive demand for manufacturing, warehouses and industrial lots, with economic zones at full occupancy.
“The opening of more industrial subdivisions will thus be beneficial to more foreign and local MSME investments, while improvement in logistics will provide more convenience, add accessibility to road networks, and reduce traffic congestion in prime locations conducive to industrial development,” it said in briefing Wednesday in Makati City.
Upcoming retail developments in Metro Manila will add about 485,000 square meters of gross leasable area until 2018 with 43.3 percent of the new areas emerging in the Manila Bay reclaimed area, 19.6 percent in Pasig City and 19.2 percent in Quezon City.
Retail expansion will be driven by developments outside Metro Manila as demand in the countryside remains robust.
Shopping malls have adopted a lifestyle-oriented trend, building community malls and retail podiums in Metro Manila as well as outside cities. Retail openings in clothing apparel and food chains are still popular because of current lifestyle trends.
The report underscored the role of consumer spending in the expansion activities of manufacturing firms and increasing the size of storage facilities.
Companies have been aggressively searching for warehouses and manufacturing spaces in known industrial locations, especially in Central and North Luzon, it said.
The sustained investor interest, growing investments from migrant Filipino workers, a robust business process outsourcing sector, and the inflow of millennial workforce will further bolster the residential sector.
Meanwhile, the lack of skilled workers for the construction sector is still the main reason for delays in the turnover of office spaces.
The bulk of office spaces will be available in the market within 2017, with over 1.6 million square meters of GLA, most of them already pre-committed.
Only four of the 20 office buildings scheduled to be delivered in the fourth quarter of 2016 started operating. The rest is expected to start operations between the first quarter of 2017 and the first quarter of 2018.
Real estate analyst and consultant Rick Santos rebranded his company as Santos Knight Frank Inc. staring January 1 2017 with a new long-term franchise partnership with Knight Frank LLP.
Santos initiated the partnership after he decided not to renew his existing franchise with CBRE.