MODERNIZED warehouses are seen to support demand for e-commerce in the Philippines, industry experts said at the BusinessWorld Insights online forum on Wednesday.
“There should be more modern warehouses to support demand for an economy that will continue to grow… and rely on e-shopping and e-commerce,” Colliers Philippines Associate Director Joey Roi H. Bondoc said.
“These warehouses are likely to be part of the REIT (real estate investment trust listing) and REIT investments of a lot of property players, because these warehouses are generating recurring income,” he added.
The coronavirus pandemic has triggered demand for warehouses within or near the Philippine capital.
The current trend or need is for goods to be delivered the same day or the following day, Mr. Bondoc said.
Dennis Velasco, chief executive officer at Prosperna, an e-commerce platform for micro, small and medium enterprises, said: “In fact, DHL and LBC are some of the major players amongst many, many others that are rapidly adopting new technologies in terms of their warehouses to create a low-touch, frictionless environment, as there are also employees who are hindered by the lack of transportation.”
“If you remember, 18 months ago, there was a big supply chain crunch because products and services were not able to move,” he noted.
Prosperna also sees an increase in new brands emerging, some of which are 100% online businesses.
Warehouse lease rates have been increasing “over the past few quarters,” Mr. Bondoc said.
Demand for warehouses is driving up such rates because many consumers are now ordering online.
“You have to note that the Philippines is primarily a consumption driven-economy; and since we are in a lockdown, the Philippines is practically a lockdown economy as well,” he added.
Companies are keen on occupying warehouses in the northern parts of Metro Manila like Caloocan, Malabon, Navotas, and Valenzuela, or Camanava.
“Outside these areas, we are also seeing greater demand for these facilities in Bulacan as well as Pampanga,” Mr. Bondoc said. — Arjay L. Balinbin
Need for more modernized warehouses seen
Source: Bantay Radio
0 Comments