Savills Philippines Facilitates Largest Industrial Leasing Transaction of 1H 2026

Savills Philippines Facilitates Largest Industrial Leasing Transaction of 1H 2026

22,000 sq m logistics deal in Laguna underscores continued strength of Luzon's fulfillment and distribution sector

TAGUIG CITY, Philippines – Savills Philippines, a member of the global real estate services provider Savills plc, today confirmed its role in facilitating the largest industrial leasing transaction recorded in the Philippines during the first half of 2026: a 22,000-square-meter logistics deal in Laguna province.

The transaction, detailed in the newly released Savills Philippines 1H 2026 Industrial Market Report, was the single largest warehouse commitment among all leasing activity tracked across South Luzon's industrial corridor during the period. Laguna alone accounted for 54,000 sq m in notable transactions in the first half of the year, with the logistics deal representing the largest individual component.

According to the report, Laguna, Batangas and Cavite together accounted for 80% of total industrial leasing transactions in the corridor during 1H 2026, with logistics and e-commerce activity concentrated almost entirely in Laguna. The province has continued to solidify its position as the primary fulfillment and distribution hub for South Luzon, driven by rising e-commerce volumes and demand for facilities that support faster last-mile delivery.

"This transaction reflects the scale of fulfillment-driven demand we are seeing in Laguna," said Ninoy Teo, Executive Director, Investment Services at Savills Philippines. "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."

Early Orolfo, Director at Savills Philippines, added that the deal is representative of a broader shift among logistics operators toward larger, more strategically located facilities. "Occupiers are increasingly thinking beyond 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."

The deal comes amid a broader slowdown in new industrial supply. The report notes that the Philippines' construction pipeline for 2026 is expected to deliver only 152,000 sq m of new industrial space, down from 450,000 sq m in 2025, as rising construction costs and macroeconomic headwinds weigh on new development. Despite the reduced supply outlook, core demand in established corridors such as Laguna has remained resilient.

Savills Philippines' Research division tracks warehouse stock, leasing activity, rental rates and vacancy across the country's key industrial provinces, including Laguna, Cavite, Batangas, Pampanga, Bulacan, Bataan and Tarlac. The full 1H 2026 Industrial Market Report is available through Savills Philippines' research publications.

About Savills Philippines

Savills Philippines is part of Savills plc, a global real estate services provider listed on the London Stock Exchange. Savills has an international network of more than 700 offices and associates throughout the Americas, the United Kingdom, continental Europe, Asia Pacific, Africa and the Middle East, offering a broad range of specialist advisory, management and transactional services to clients worldwide.

For further information, please contact:

Quirino “Ninoy” Teo, Executive Director ([email protected])

Jamie Dela Cruz, Research Manager ([email protected])