SM Prime Holdings Inc. expects sustained demand for warehouse and logistics facilities as e-commerce, faster delivery expectations, and last-mile distribution reshape the Philippine supply chain.
The property giant recently expanded its partnership with SPX Express and S Commerce through the turnover of a 40,000-square-meter facility in Magsaysay City, bringing SM Warehouses’ total industrial property footprint to more than 126,000 square meters.
Alexis Ortiga, head of SM Prime’s Commercial Property Group, said logistics demand should remain resilient despite slower consumption growth and persistent economic uncertainty.
He said younger consumers are raising expectations for faster deliveries, creating demand for distribution centers and last-mile hubs closer to major population centers.
“These last-mile hubs actually complement the bigger regional warehousing facilities,” Ortiga said, noting that regional warehouses can accommodate larger inventories but are generally located farther from urban centers.
The company sees further room for growth from the Philippines’ young consumer base, particularly Gen Z and millennials, whose continued adoption of online shopping is expected to support demand for industrial and logistics space.
Ortiga also identified the growing use of renewable energy as another potential demand driver. Wider adoption of solar panels, batteries, and related equipment could create additional requirements for specialized storage and fulfillment facilities.
SM Warehouses is keeping its expansion strategy flexible, using SM Prime’s nationwide land bank to identify opportunities. While it has no immediate plans to develop industrial parks, the company can pursue build-to-suit facilities for manufacturers and remains open to warehouse projects outside Luzon, including Cebu.
The latest SPX lease covers five years, underscoring SM Prime’s role in supporting the logistics provider’s expanding nationwide network.
For SM Warehouses, the growth opportunity extends beyond simply adding space. As Philippine consumers demand faster delivery and companies seek more responsive supply chains, strategically located warehouses and last-mile facilities are becoming increasingly important links between businesses and customers.
