Industrial MarketBeat Report

Selling prices and lease rates across industrial estates and logistics facilities held broadly stable through Q2 2026, with selective upward pressure in submarkets where quality supply remains constrained. Within CALABA, the contrast between subdistricts is instructive: the range of headline rents for new, highly-specified, PEZA-ready products in Batangas commands a 15%-40% advantage over the current offerings in Laguna and Cavite, where older, discounted, stock dominates. Laguna, the loosest of the three markets, saw higher volatility in the range of market rent ease by about 3.5% as developers incentivized volume, illustrating how supply timing rather than demand weakness is shaping headline rates.

Input cost inflation, driven by elevated construction material prices, energy costs, and a weaker peso, continued to exert upward pressure on development economics, reinforcing the pricing floor for new and recently completed stock. Occupiers and investors are increasingly focused on total cost of occupancy, weighing capital expenditure, operational efficiency, and sustainability credentials alongside headline rent. This dynamic should sustain pricing discipline across quality assets while widening the spread between prime and secondary product through the remainder of the year.