Xavier University - Ateneo de Cagayan

School of Business and Management

Bachelor of Science in Real Estate Management

A MARKET STUDY ON THE PROPOSED INDUSTRIAL WAREHOUSE IN

KAUSWAGAN, CAGAYAN DE ORO CITY

Submitted to:
Edgardo A. Palasan, MBA, REA, REB

In Partial Fulfillment of the requirements for

REAL PROPERTY MANAGEMENT SYSTEM (REM 14)

Submitted by:
Ares, Kristian Michael J.
Fumar, Julian Keeves Z.
Oliver, John Alex M.
Satinitigan, Ju Q.

Date:
January 12, 2019
 TABLE OF CONTENTS

ABSTRACT 4

ACKNOWLEDGEMENT 6

LIST OF TABLES

Table 3.1 - Reliability Statistics 16

Table 3.2 - Item Statistics 17

Table 3.3 - Linear Regression 18

Table 3.4 - Coefficient Analysis 19

Table 3.5 - Pearson’s R and Spearman Correlation 20

Table 3.6 - Pearson Correlation 21

Table 3.7 - Rental per SQM-Lease Area Cross Tabulation 23

Table 3.8 - Single Factor Analysis of Variance (ANOVA) 24

Table 3.9 - Tukey HSD Test 25

Table 3.10 - One-Tailed Test 28

Table 3.11 - Regression In Depth Analysis 28

Table 5.1 - Product Line Frequency Distribution Table

41

Table 5.2 - Preferred Lease Area Frequency Distribution Table 42

Table 5.3 - Preferred Rental Rate per Month Frequency Distribution Table 43

Table 5.4 - Per Square Rental Average Frequency Distribution Table 43

Table 5.5 - Lease Area Average Frequency Distribution Table 44

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 Table 5.6 - Lease Amount Per Month Frequency Distribution Table 44

Table 5.7 - Legal Factor Average Frequency Distribution Table 45

Table 5.8 - Physical Factor Average Frequency Distribution Table 45

Table 5.9 - Economic Factor Average Frequency Distribution Table 46

Table 5.10 - Financial Return Factor Average Frequency Distribution Table

46

Table 5.11 - Decision to Lease Frequency Distribution Table 47

LIST OF FIGURES

Figure 1.1 - Conceptual Framework 8

CHAPTER 1 - THE PROBLEM 7

Introduction 7

Statement of the Problem 8

Conceptual Framework 9

Hypotheses 10

Significance of the Study 11

Scope and Limitations 11

Definition of Terms 12

CHAPTER 2 - RESEARCH METHODOLOGY 13

Research Design 13

Research Setting 13

Respondents of the Study 14

2
 Sampling Techniques 14

Research Instrument 14

Data Collection Procedure 14

Statistical Treatment of Data 15

CHAPTER 3 - ANALYSIS AND INTERPRETATION OF DATA 16

CHAPTER 4 - SUMMARY 29

Conclusion 29

Recommendation 29

BIBLIOGRAPHY 31

APPENDICES 34

Location Map 34

Distance From Westbound Terminal 35

Project Perspective 36

Frequency Distribution Tables 41

Survey Questionnaire 48

CURRICULUM VITAE 52

3
ABSTRACT

With the economic and social development and progress of the city of Cagayan

de Oro comes along a growing demand in real estate properties. The proponents of this

study deemed it necessary and vital to seize the opportunity brought by this growing

demand in the real estate market and proposed a real estate project, specifically an

industrial warehouse, in order to cater the warehousing and storage needs of existing

businesses or establishments required for their business operations.

The purpose of this market study is to determine and identify the level of demand

for light industrial real estate projects, specifically warehouses, in Cagayan de Oro City.

For this market study, the proponents used the descriptive and predictive (relational)

research methods. Thus, we applied the survey and correlational approaches in

describing their responses and assessing the degree of relationships between two or

more variables affecting their decision to lease. This design is typically concerned with

determining the frequency with which something occurs or the relationship between the

variables. Descriptive research design was used in this study by gathering data from the

survey conducted.

The researchers gathered data from 8 respondents, all of which are from existing

warehouses in Cagayan de Oro City. The researchers used survey questionnaires as

the research instrument for this study in the collection and gathering of data. The data

gathered are then analyzed and tabulated using the research analytical software,

SPSS. In the statistical treatment of data, the researchers used the Linear Regression

Predictive Analysis, Coefficient Analysis, Pearson’s R Correlation, Spearman

4
Correlation, One-tailed Test, One-Way ANOVA, and Cronbach’s Alpha Test for

Reliability.

The findings of the study states that there was a strong relationship from the

independent variable to the dependent variable particularly on the Legal Factor,

Physical Factor, Financial Return Factor, and the Lease Amount per Month. Each factor

would bring a big change to the Lease decision of the tenant depending on the result of

these independent variables. It was also concluded, based from all the data gathered

and summarization of results that there was an existing demand for industrial

warehouses in the city of Cagayan de Oro.

5
 ACKNOWLEDGEMENT

We would like to extend our deepest gratitude to the following who have helped

us in the completion of this study:

Xavier University - Ateneo de Cagayan ​for the opportunity to conduct this

study and to be of service to the academic community;

Fr. Roberto C. Yap, SJ​, University President of Xavier University - Ateneo de

Cagayan, allowing us to conduct this research;

Mr. Edgardo A. Palasan, MBA, REB, REA and all the other professors ​for

their utmost support and encouragement, for providing valuable advices, for guiding and

sharing their knowledge in organizing and perfecting every stage of this paper;

Our families, ​Ares family, Fumar family, Oliver family, and Satinitigan family

for always believing in us and making us feel better about ourselves; and to

Almighty God, ​for the gift of love and inspiration to become a better educator.

Ad Majorem Dei Gloriam!

Kristian Michael Ares

Julian Keeves Fumar
John Alex Oliver
Ju Satinitigan

6
 CHAPTER 1 - THE PROBLEM

This chapter introduces the study which includes the description of the property

subjected for the proposed industrial warehouse project, the proponents who conducted

the study, the statement of the problem, the conceptual framework, the null hypotheses,

the significance of the study, the scope and limitations, and the definition of terms.

A. INTRODUCTION

“The best investment on Earth is earth.” An American business executive, Louis

Glickman once said. There are many investment schemes that we can identify to earn a

profitable venture. Imagine the business market giving us plenty of options to choose

from, but as wise investors we should venture more on investments that can give us the

highest yields so that it would be worth our effort, time and most importantly the money

we put for capitalization.

The proponents of this study are Real Estate Management students of Xavier

University - Ateneo de Cagayan who are currently taking up Real Estate Consultancy

subject. The proponents are conducting a feasibility study which will serve as a

culmination and application of all the things they learned in the four corners of their

classrooms regarding industrial real estate which commonly referred to as properties

used by companies in the course of operating a business. Examples of such properties

include offices, warehouses, garages, and distribution centers. Also, industrial

properties must be near docking bays, where trucks can load and unload goods. From

7
the above-mentioned examples, this study focuses on warehousing which is located in

Barangay Kauswagan, Cagayan de Oro City.

This feasibility study started with the identification of the subject property, followed by

the compilation of information, and then analysis of the data gathered. This feasibility

study is subject to the review and examination of the subject instructor in order to

assess the students’ performance.

This comprehensive feasibility study is intended for the completion of the REM

14 (Property Management System) subject, second semester, for the academic year

2018-2019. This report has its limitations as indicated under the section scope and

limitation. The summary and conclusion are based on the data gathered by the students

and their analysis on them while taking into consideration the scope and limitation,

which then resulted to a growing demand in the market of industrial real estate in the

City of Cagayan de Oro.

B. STATEMENT OF THE PROBLEM

This market study focuses on determining whether the proposed industrial

warehouse, located at Brgy. Kauswagan, would turn out to be rentable by possible

tenants particularly in Cagayan de Oro City. The independent variables, which are

included in this study that would lead to its dependent variable, which is the tenant’s

decision to lease are the following: Preferred Rental per Square Meter, Preferred Lease

Area, Legal Factors, Physical Factors, Economic Factors and Financial Return Factors.

Each variable would contribute to the outcome whether the proposed project would

attract business tenants or not.

8
C. CONCEPTUAL FRAMEWORK

Figure 1.1 - Conceptual Framework

The conceptual framework shows the dependent and the independent variables.

In this study, the independent variables that were considered were the preferred rental

area, the preferred lease area, the legal factors, physical factors, economic factors, and

the financial return factors of the warehouse development. The dependent variable is

the Highest and Best Use of the warehouse. The six independent variables are the

9
factors that would affect the dependent variable, which is the highest and best use of

the warehouse.

HYPOTHESIS

Null Hypotheses

1. The legal factors of the warehouse do not affect the tenant’s decision to lease.

2. The physical factors of the warehouse do not affect the tenant’s decision to

lease.

3. The economic factors of the warehouse do not affect the tenant’s decision to

lease.

4. The financial return factors of the warehouse do not affect the tenant’s decision

to lease.

5. The preferred rental area factor of the warehouse do not affect the tenant’s

decision to lease.

6. The preferred lease area factor of the warehouse do not affect the tenant’s

decision to lease.

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D. SIGNIFICANCE OF THE STUDY

This study will benefit the prospective tenants, the property owners, and the

economy. For the prospective tenants, this study will benefit them in such a way that

their warehousing needs, such as the area size needed and warehouse facilities, will be

taken into consideration in the development of the warehouse and the rental rates will

be priced just right. For the owners, this study will benefit them in such a way that they

can sell the property to investors who would be interested in developing a warehouse,

or they could develop a warehouse themselves and generate income through rental

payments. Lastly, this study will benefit the economy as the proposed warehouse will be

of help to the business operations of the tenants. This can potentially create jobs in the

future and generate more income to the business of the tenants, which ultimately would

benefit the economy.

E. SCOPE AND LIMITATIONS

The scope of the study involves the time and money spent, the tools, materials,

and techniques used considering the difficulty of searching for respondents to make the

survey possible. However, due to the lack of time and resources, the researchers were

able to conduct a survey of only 8 companies as respondents from which the

researchers believe that they were enough as the researchers were already able to

extract vital and genuine informations necessary for the study. It is very unfortunate

though that there are numerous companies who declined to be part of the survey for

some reasons like “confidentiality”, “privacy” and the likes while some just don’t want to

spend a little time to answer the questionnaires for the survey. But despite the number

11
of respondents, the researchers are still confident for the reliability of the study as the

informations that has been gathered from the survey came from a legitimate and

well-established companies. The study aims to investigate the overall condition with

regards to the marketability of a warehouse in Cagayan de Oro City. The study is only

limited to warehousing, the researchers only surveyed all those properties that were

utilized for warehousing; other properties that are outside the zoning of an industrial

warehouse are not included.

F. DEFINITION OF TERMS

1. Industrial Real Estate - all land and buildings either utilized or suited for industrial

activities.

2. Industrial - relating to factories and people who work in factories.

3. Warehouse - a large building wherein raw materials or manufactured goods may

be stored before their export or distribution for sale.

4. Survey/Surveying - method used to obtain statistical data of the population that

responded to the questionnaires.

5. Survey Questionnaire - a research instrument consisting of a series of questions

and other prompts for the purpose of gathering information from respondents.

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 CHAPTER 2 - RESEARCH METHODOLOGY

This chapter presents the research methodology of the study, which includes the

research design, research setting, respondents of the study, sampling techniques,

statistical treatment of data, research instrument, data collection procedure, and the

validation of the questionnaire and test for reliability.

A. Research Design

The research method that was used by the group was the descriptive and

predictive research methods. This design is typically concerned with determining the

frequency with which something occurs or the relationship between the variables.

Descriptive research method was used in this study by gathering data from the survey

conducted. This research method will aid in examining how the factors affect the main

problem of the study. The researchers conducted a survey with the managers or

administrators of the existing warehouses in Cagayan de Oro City using a survey

questionnaire. The survey designs are classified together because they also belong

together logically.

B. Research Setting

The descriptive research method was done in the warehouses located in

Kauswagan, Cagayan de Oro City. The respondents in our survey were the tenants of

the existing warehouses that the researchers surveyed.

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C. Respondents of the study

The respondents for this study were 8 companies with various natures of

businesses that are renting warehouses with different locations, area size, and monthly

rent rates. The respondents who answered the survey questionnaires were the

personnel in charge of the warehouse or their managers or administrators. Most of the

respondents are renting a warehouse in the city and some are using their own

warehouse.

D. Sampling Techniques

The study will use the random sampling. The researchers will give out survey

questionnaires to the managers or administrators of existing warehouses in Cagayan de

Oro City.

E. Research Instrument

A questionnaire was chosen as data collection instrument. A questionnaire is a

printed self-report form designed to elicit information that can be obtained through the

written responses of the subjects.

F. Data Collection Procedure

The respondents of this study will be the tenants of the existing warehouses

represented by the personnel in charge of the warehouses or the managers or

administrators. There will be 8 respondents for this study consisting of companies with

14
various natures of businesses. The sampling method that will be used is the

convenience sampling. A convenience sample is a sample wherein the units that are

selected for inclusion in the sample are the easiest to access.

G. Statistical Treatment of Data

After the collecting stage, the data must be organized. The researchers will

encode and tabulate it in Microsoft Excel. The researchers used the frequency

distribution table to rank the disorganized data from the highest to the lowest.

For questions that need averaging, they will find the mean so as to measure the

level or extent. Consequently, the data encoded in the Microsoft Excel will be entered

into the SPSS. The researchers will use the Linear Regression Predictive Analysis,

Coefficient Analysis, Cronbach’s Alpha Test for Reliability, Pearson’s R Correlation,

Spearman Correlation, One-Way ANOVA, and One-Tailed Test. The results will be

interpreted by the researchers. After the interpretation of data, the researchers will give

recommendations to be implemented.

15
 CHAPTER 3 - ANALYSIS AND INTERPRETATION OF DATA

This chapter presents the data gathered in the study and interpretation of the

results from the conducted survey for this market study of the proposed industrial

warehouse at Kauswagan, Cagayan de Oro City. The following tables were generated

using the research tool, SPSS, to analyze the data gathered in this study.

Table 3.1 - Reliability Statistics

The proponents of this study used the SPSS software to test for the reliability of

the variables and the data collected using the Cronbach’s Alpha reliability test.

Cronbach's Alpha is a measure of internal consistency, that is, how closely related a set

of items are as a group. A reliability coefficient of 0.70 or higher is considered

acceptable. The alpha coefficient for 55 items as shown above is 0.741, which suggests

that the items have a relatively acceptable and reliable internal consistency.

16
 Table 3.2 - Item Statistics

The items above are the items included in the test for reliability using the

Cronbach’s Alpha, as seen on Table 3.1. The data gathered from the survey

questionnaire were tallied to get the mean. A mean of 1.00-1.49 means that the

17
respondents strongly disagree on that item. A mean of 1.50-2.49 means that the

respondents disagree on that item. A mean of 2.50-3.49 means that the respondents

agree on that item. A mean of 3.50-4.00 means that the respondents strongly agree on

that item.

Table 3.3 - Linear Regression

The table above shows the linear regression predictive analysis of the

independent variables of the study namely, lease amount per month, legal factor,

financial return factor, per square rental, economic factor, and physical factor average.

The significance level is 0.000, which means that there is strong significance or strong

correlation of the independents variable to the dependent variable, as a level below 0.05

is considered significant.

18
 Table 3.4 - Coefficient Analysis

The table above shows the coefficient analysis of the variables in the study. The

per square rental average yielded a coefficient of 0.000, which means that there is a

weak relationship between this independent variable to the dependent variable. The

legal factor average yielded a coefficient of 1.000, which means that there is a strong

relationship between this independent variable to the dependent variable. The physical

factor average yielded a coefficient of 0.894, which means that there is a strong

relationship between this independent variable to the dependent variable. The economic

factor average yielded a coefficient of 0.000, which means that there is a weak

relationship between this independent variable to the dependent variable. The financial

return factor average yielded a coefficient of 0.894, which means that there is a strong

relationship between this independent variable to the dependent variable.

19
 Table 3.5 - Pearson’s R and Spearman Correlation

The table above shows a Monte Carlo significance test for the Pearson’s R and

Spearman Correlation of the data gathered in this study. Statistical significance is

determined by the set alpha level of 0.05, below of which is considered significant. The

table above shows a Monte Carlo significance coefficient of 0.000 for both the

Pearson’s R and Spearman Correlation, which means that the data gathered are

significant.

20
 Table 3.6 - Pearson Correlation

The table above shows the pearson correlation of the independent variables, per

square rental, lease area, legal factor, physical factor, economic factor, financial return

factor, to the dependent variable, decision to lease. The pearson correlation coefficient

21
of the per square rental average to the decision to lease is 0.537, which means that

they are moderately correlated. The pearson correlation coefficient of the lease area

average to the decision to lease is 0.258, which means that they are weakly correlated.

The pearson correlation coefficient of the legal factor average to the decision to lease is

0.600, which means that they are moderately correlated. The pearson correlation

coefficient of the physical factor average to the decision to lease is 0.149, which means

that they are weakly correlated. The pearson correlation coefficient of the economic

factor average to the decision to lease is 0.516, which means that they are moderately

correlated. The pearson correlation coefficient of the financial return factor average to

the decision to lease is 0.149, which means that they are weakly correlated.

22
Table 3.7 - Rental per SQM - Lease Area Cross tabulation

23
 The table above shows the cross tabulation of the preferred rental per square

meter of the respondents and their preferred lease area. The table shows that 4

respondents preferred a lease area of 501-1000 square meters at a rental rate per

square meter of P101-P150, 2 respondents preferred a lease area of 1001-1500 square

meters at a rental rate per square meter of P151-P200, 1 respondent preferred a lease

area of 1501-2000 square meters at a rental rate per square meter of P251-P300, and 1

respondent preferred a lease area of 2501 square meters and above at a rental rate per

square meter of P301 and above.

Table 3.8 -Single Factor Analysis of Variance (ANOVA)

The table above shows the single factor analysis of variance. This statistical

method is used to test the null hypothesis that the means of several groups is equal.

The result shows that F is equal to 8.78853082 and F crit is 2.178155555. Since F is

greater than the F crit, it means that the means of several groups are not all equal. Also,

the P-Value yielded a result of 3.0169E-07 or 0.00000030169, which is below the set

alpha level of 0.05. Therefore, the null hypothesis shall be rejected.

24
25
26
 Table 3.9 - Tukey HSD Test

The table above shows the Tukey Honestly Significant Difference Test, which

shows where the exact differences lie in the distribution of data analyzed and used in

the Analysis of Variance (ANOVA) on Table 3.8.

27
 Table 3.10 - One-Tailed Test

The table above shows the one-tailed test of the data gathered in the survey. The

test yielded a result of 0.023, which falls below the critical area of 0.05. This means that

the alternative hypothesis will be supported and the null hypothesis will be rejected.

Table 3.11 - Regression In Depth Analysis

The table above shows the regression in depth analysis, which yielded a

significance result of 0.047. This falls below the set alpha level of 0.05. This means that

HABU factors and the Lease Decision of the tenants have a significant influence on the

market demand for warehouses.

28
 CHAPTER 4 - SUMMARY

This chapter presents the conclusion of the study, based on the analysis and

results generated by the research analytical tool, SPSS. This chapter also presents the

recommendations and actions to be taken that the proponents propose for the

improvement of the study, addressed and directed to the students, professors,

prospects, government, and other stakeholders.

CONCLUSION

Based on the results and the analysis of the data gathered as shown on the

previous chapter, it can be concluded that there is an existing demand for industrial

warehouses in the city of Cagayan de Oro. With a significance level of 0.000 based on

the result of the linear regression analysis, it can be concluded that the HABU Factors

and the Decision to Lease have strongly influenced the market demand for warehouses

in Cagayan de Oro City, as a P-value of below 0.05 is considered significant. The null

hypothesis shall then be rejected and the alternative hypothesis will be supported.

RECOMMENDATION

The proponents of this study recommends specific action steps to be taken for

the improvement of the study and for the overall benefit and betterment of the proposed

industrial warehouse project. Based on the rental per square meter and the lease area

cross tabulation, as seen on Figure 3.7, it is recommended that the proposed industrial

project shall have a lease area of 501-1000 square meters at a rental rate of P101-P150

per square meter. It is also recommended for the future proponents of studies similar to

29
this that they should aim to gather as many respondents as possible for the data

gathering and to find a better way to work around the constraints in time and resources.

It is also recommended that the proponents of this study to further proceed into

conducting a feasibility study of the proposed warehouse project in order to assess the

investment return and cost-benefit of the project based on the total estimated cost of the

warehouse including the land acquisition cost, construction cost, and other costs directly

or indirectly attributable to the project, and the projected potential rent income

generated from leasing out the warehouse units.

30
BIBLIOGRAPHY

1. Buttimer, R., Rutherford, R., & President, R. (1997). Industrial warehouse rent

determinants in the Dallas/Fort Worth area. ​Journal of Real Estate Research,​ ​13(​ 1),

47-55.

2. He, Y., Wang, J., Wu, Z., Hu, L., Xiong, Y., & Fan, W. (2002). Smoke venting and fire

safety in an industrial warehouse. ​Fire Safety Journal​, ​37​(2), 191-215.

3. Meera, C. M. (2013). Pre-engineered building design of an industrial warehouse.

international journal of engineering sciences & emerging technologies​, ​5(​ 2), 75-82.

4. Miles, M., Cole, R., & Guilkey, D. (1990). A different look at commercial real estate

returns. ​Real Estate Economics,​ ​18(​ 4), 403-430.

5. Ambrose, B. (1990). An analysis of the factors affecting light industrial property

valuation. ​Journal of Real Estate Research,​ ​5​(3), 355-370.

6. Bogataj, M. (1996). Inventories in spatial models. ​International Journal of Production

Economics​, ​45​(1-3), 337-342.

7. Thompson, B., & Tsolacos, S. (1999). Rent adjustments and forecasts in the

industrial market. ​Journal of Real Estate Research,​ ​17(​ 2), 151-167.

8. Tan, K. S., Ahmed, M. D., & Sundaram, D. (2009, June). Sustainable warehouse

management. In ​Proceedings of the International Workshop on Enterprises &

Organizational Modeling and Simulation​ (p. 8). ACM.

9. Schiller, R. (2003). ​The Dynamics of Property Location: Value and the factors which

drive the location of shops, offices and other land uses​. Taylor & Francis.

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10. Grissom, T. V., Hartzell, D., & Liu, C. H. (1987). An approach to industrial real estate

market segmentation and valuation using the arbitrage pricing paradigm. ​Real Estate

Economics​, ​15​(3), 199-219.

11. Thomas, J. (2002). Environmental contamination and industrial real estate prices.

Journal of Real Estate Research,​ ​23(​ 1-2), 179-200.

12. Everett, H. R., Gage, D. W., Gilbreath, G. A., Laird, R. T., & Smurlo, R. P. (1995,

January). Real-world issues in warehouse navigation. In ​Mobile Robots IX (Vol. 2352,

pp. 249-260). International Society for Optics and Photonics.

13. Bassan, Y., Roll, Y., & Rosenblatt, M. J. (1980). Internal layout design of a

warehouse. ​AIIE Transactions,​ ​12​(4), 317-322.

14. Rai, D., Sodagar, B., FieldsoAshayeri, J., & Gelders, L. F. (1985). Warehouse

design optimization. ​European Journal of Operational Research​, ​21(​ 3), 285-294.n, R., &

Hu, X. (2011). Assessment of CO2 emissions reduction in a distribution warehouse.

Energy​, ​36​(4), 2271-2277.

15. Marín, R. M., Garrido, J., Trillo, J. L., Sáez, J., & Armesto, J. (1998). Design and

simulation of an industrial automated overhead warehouse. ​Integrated Manufacturing

Systems,​ ​9​(5), 308-313.

16. Ashayeri, J., & Gelders, L. F. (1985). Warehouse design optimization. ​European

Journal of Operational Research,​ ​21(​ 3), 285-294.

17. Gu, J., Goetschalckx, M., & McGinnis, L. F. (2010). Research on warehouse design

and performance evaluation: A comprehensive review. ​European Journal of Operational

Research,​ ​203​(3), 539-549.

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18. Gu, J., Goetschalckx, M., & McGinnis, L. F. (2007). Research on warehouse

operation: A comprehensive review. ​European journal of operational research​, ​177(​ 1),

1-21.

19. Cormier, G., & Gunn, E. A. (1992). A review of warehouse models. ​European

Journal of Operational Research,​ ​58(​ 1), 3-13.

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European Journal of Operational Research​, ​193​(2), 425-436.

33
 APPENDICES

Location Map

The image below shows the satellite view of the location of the project area. The

image was taken from Google Earth. The location of the area has the coordinates of

8°30’27.2N 124°37’49.8”E.

Source: Google Earth

34
Distance from the Westbound Terminal

The image below shows the distance of the project area from the Westbound

Terminal. According to the Google Maps, the project area is approximately 1.2

kilometers away from the said terminal, which is about a 3-minute travel by car.

Source: Google Maps

35
Project Perspective

The following images show the perspective of the proposed industrial warehouse

project. These images were created and designed by a licensed professional engineer

who partnered with the proponents of this study.

Man’s Eye Perspective

36
Aerial Perspective 1

Aerial Perspective 2

37
Aerial Perspective 3

Interior Perspective 1

38
Interior Perspective 2

Interior Perspective 3

39
Interior Perspective 4

40
Frequency Distribution Tables

The following tables show the frequency distribution of respondents based on the

corresponding data gathered from the survey.

Table 5.1 - Product Line Frequency Distribution Table

The table 5.1 above shows the distribution of respondents based on the product

line of the respondents of the survey.

41
 Table 5.2 - Preferred Lease Area Frequency Distribution Table

The table 5.2 above shows the distribution of respondents based on their

preferred lease area for a warehouse unit.

42
 Table 5.3 - Preferred Rental per Square Meter Frequency Distribution Table

The table 5.3 above shows the distribution of respondents based on their

preferred rental rate per month.

Table 5.4 - Per Square Rental Average Frequency Distribution Table

The table 5.4 above shows the distribution of respondents based on the per

square rental average from the data gathered from the survey.

43
 Table 5.5 - Lease Area Average Frequency Distribution Table

The table 5.5 above shows the distribution of respondents based on the lease

area average from the data gathered from the survey.

Table 5.6 - Lease Amount Per Month Frequency Distribution Table

The table 5.6 above shows the distribution of respondents based on the lease

amount per month average from the data gathered from the survey.

44
 Table 5.7 - Legal Factor Average Frequency Distribution Table

The table 5.7 above shows the distribution of respondents based on the legal

factor average from the data gathered from the survey.

Table 5.8 - Physical Factor Average Frequency Distribution Table

The table 5.8 above shows the distribution of respondents based on the physical

factor average from the data gathered from the survey.

45
 Table 5.9 - Economic Factor Average Frequency Distribution Table

The table 5.9 above shows the distribution of respondents based on the

economic factor average from the data gathered from the survey.

Table 5.10 - Financial Return Factor Average Frequency Distribution Table

The table 5.10 above shows the distribution of respondents based on the

financial return factor average from the data gathered from the survey.

46
 Table 5.11 - Decision to Lease Frequency Distribution Table

The table 5.11 above shows the distribution of respondents based on the survey

respondents’ decision to lease.

47
Survey Questionnaire

This survey examines the Highest and Best Use (HABU) level as influence by major
factors particularly on Legal, Physical, Economic and Financial affecting decision
process of Industrial Warehouse Project development in Kauswagan, Cagayan de Oro
City. Your honest and thoughtful answers are very important.

YOUR RESPONSES WILL REMAIN CONFIDENTIAL AND ANONYMOUS

Your participation is highly appreciated. Thank you!

Company Name: __________________________

Nature of Business:________________________
Address:_________________________________
Position: ____________Owner, ________________Manager, ___________Supervisor

Please mark “X” to the space provided for your answer of the questions below:

COMPANY PROFILE
1. What are the types of products does your company produce/distribute?
[ ] Electronics [ ] Apparel [ ] Construction parts/supply [ ] Food/Agri Products [ ]
Others: ___________

2.1. Do you have any warehouses leased by your company?

[ ] YES [ ] NO

2.2. If YES, how much are you paying per month per square meter?
[ ] Below P100 per sqm
[ ] P101 per sqm to P150 per sqm
[ ] P151 per sqm to P200 per sqm
[ ] P201 per sqm to P250 per sqm
[ ] P251 per sqm to P300 per sqm
[ ] P301 per sqm and above

2.3. How big is the warehouse leased by your company?

[ ] Below 500 sqm
[ ] 501 sqm to 1000 sqm
[ ] 1001 sqm to 1500 sqm
[ ] 1501 sqm to 2000 sqm
[ ] 2001 sqm to 2500 sqm
[ ] 2501 sqm and above

2.4. How much are you paying per month?

[ ] Below P50,000 per month
[ ] P50,001 to P100,000 per month
[ ] P100,001 to P150,000 per month
[ ] P150,001 to P200,000 per month
[ ] P200,001 to P250, 000 per month

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[ ] P250,001 and above

2.5 How would you rate the expensiveness of the rent you are paying? (Affordability and
Expensiveness Level)
[ ] Very Cheap
[ ] Quite cheap
[ ] Just right
[ ] Quite Expensive
[ ] Very Expensive

Please mark “X” in the box that best describes your response on a scale from one (1) to
five (5)

WAREHOUSE PREFERENCES

1-Strongly Disagree 2-Disagree 3-Agree 4-Strongly Agree

Legal Factors 1 2 3 4

1 Our company prefers a Renewable lease agreement every year.

2 Our company prefers a Expansion Option lease agreement with right

of first refusal

3 Our company prefers a lease agreement from two to five years with
options to concessions.

4 Our company prefers a lease agreement from five to ten years with
options to concessions.

5 Our company prefers a lease agreement of ten years or more with

options to concessions.

6 Our company prefers a lease agreement of less than one year.

Physical Factors

7 Our company prefers a warehouse that has allocated parking area for
officers/employees.

8 Our company prefers a warehouse that has allocated delivery area

for Truck/Van deliveries.

9 Our company prefers a warehouse that has proper ventilation.

10 Our company prefers a warehouse that has an office space.

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11 Our company prefers a warehouse that has a high vertical clearance.

12 Our company prefers a warehouse that is located within the city.

13 Our company prefers a warehouse accessible with any mode of land

transportation.

14 Our company prefers a warehouse located near a major seaport or

airport of entry.

15 Our company prefers a warehouse that is located in a flood-free area.

16 Our company prefers a warehouse that is declared by MGB as

non-earthquake belt area.

17 Our company prefers a warehouse with 24/7 security and complete

with CCTV cameras

18 Our company prefers a warehouse with complete sprinkler water line

systems against fire hazards

19 Our company prefers a warehouse in nearby private and government

amenities and facilities (such as Public Markets, Terminals, Malls or
Retail stores)

Economic Factors

20 Our company chooses rental policy based on flat rate throughout the
term of the lease.

21 Our company chooses rental policy based on graduated rent, which

increases yearly after 5 years.

22 Our company chooses rental policy, which increases based on

consumer price index.x

23 Our company chooses rental policy based fixed rent and percentage
sales.

24 Our company chooses proportionate maintenance expenses to total

area leased.

25 Our company is anticipating high market growth expansion of Metro

Cagayan de Oro City.

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26 Our company chooses a warehouse within the declared economic
growth area of Cagayan de Oro City.

Financial Return Factors

27 Our company prefers lease policy based on Gross Lease (Owner

pays operating expenses)

28 Our company prefers lease policy based Net Lease (Sharing of

Operating expenses)

29 Our company prefers lease policy based on Net-Net Lease (Property

Taxes and Insurance paid by lessee)

30 Our company prefers lease policy based on Triple Net Lease (All
Operating Expenses paid by lessee).

31 Our company is interested to lease the proposed warehouse located

in Kauswagan, Cagayan de Oro City

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 CURRICULUM VITAE

Contact Information
Name: John Alex M. Oliver
Address: Purok 3, Kinawitnon, Babak District, Island Garden City of
Samal
Mobile Number: (0917) 723 7787
E-mail Address: johnalex.oliver@yahoo.com

Personal Information
Date of Birth: February 13, 1996
Place of Birth: Davao City
Citizenship: Filipino
Gender: Male

Education
Primary Education: Fatima de Davao School of Ma-a (2002-2008)
Ma-a, Davao City
Secondary Education: St. Paul College, Pasig - Davao Campus (2008-2012)
Riverfront Corporate City, Diversion Road, Ma-a, Davao City
Tertiary Education: Ateneo de Davao University (2012-2017)
Bachelor of Science in Marketing
Jacinto St., Davao City

Xavier University - Ateneo de Cagayan (Present)

Bachelor of Science in Real Estate Management
Corrales Ave., Cagayan de Oro City

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Contact Information
Name: Julian Keeves Z. Fumar
Address: #26 Orion St. Villa Ernesto Subd. Phase 1, Gusa, Cagayan de Oro City
Mobile Number: (0926) 570 1944
E-mail Address: juliankeevesfumar@gmail.com

Personal Information
Date of Birth: February 23, 1998
Place of Birth: Cagayan de Oro City
Citizenship: Filipino
Gender: Male

Education
Primary Education: Xavier University Grade School (2002-2011)
Macasandig, Cagayan de Oro City
Secondary Education: Xavier University High School (2011-2015)
Pueblo de Oro, Cagayan de Oro City
Tertiary Education: Xavier University (2015-Present)
Bachelor of Science in Real Estate Management
Corrales Ave., Cagayan de Oro City

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Contact Information
Name: Kristian Michael J. Ares
Address:195 Tejero Subdivision, Patag, Cagayan de Oro City
Mobile Number: (0975) 190 6438
E-mail Address: aresxtianmichael@gmail.com

Personal Information
Date of Birth: September 28, 1994
Place of Birth: Cagayan de Oro City
Citizenship: Filipino
Gender: Male

Education
Primary Education: Vita Christi School (2002 - 2008)
Macasandig, Cagayan de Oro City
Secondary Education: Liceo de Cagayan University (2008-2012)
Pueblo de Oro, Cagayan de Oro City
Tertiary Education: Xavier University (2015-Present)
Bachelor of Science in Real Estate Management
Corrales Ave., Cagayan de Oro City

54
Contact Information
Name: Ju Q. Satinitigan
Address: Zone 5 Puerto, Cagayan de Oro City
Mobile Number: (0905) 103 0706
Email: jusa24sweetbrainy@gmail.com

Personal Information
Date of Birth: November 24, 1997
Place of Birth: Mandaluyong, Metro Manila
Citizenship: Filipino
Gender: Female

Education
Primary Education: Puerto Elementary School (2004-2010)
Puerto, Cagayan de Oro City

Secondary Education: Bugo, National High School (2010-2014)

Reyes Village, Bugo, Cagayan de Oro City

Tertiary Education: Xavier University (2014-Present)

Bachelor of Science in Real Estate Management
Xavier University- Ateneo de Cagayan
73 Corrales Ave, Cagayan de Oro, 9000 Misamis Oriental

55