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Manila Bulletin devider Property and Living devider Low vacancy rates elevate the retail sector

Low vacancy rates elevate the retail sector

For the third quarter of 2025, the low supply and high demand for mall spaces drive retail vacancy rates to fall, according to Colliers Philippines

Published Nov 6, 2025 10:53 am
Ayala Parklinks
Ayala Parklinks
The vacancy rates of the Philippine retail market have been declining due to limited supply, the entry of foreign brands, the growth of F&B and fashion retailers, and innovative retail concepts. Research Director Joey Roi Bondoc discussed in detail the retail market performance at the recent Colliers Philippines third-quarter briefing, held at Ascott Bonifacio Global City on October 29, 2025. 
According to his report, there are 7.9 million sqm of leasable retail space in Metro Manila as of the first quarter of 2025. New mall spaces, completed from this year’s second quarter to the third quarter of 2025, cover 15,000 sqm, with the recent completion of GH South Wing and Lucky Chinatown Mall Imperial Wing.
Colliers Philippines Research Director Joey Bondoc
Colliers Philippines Research Director Joey Bondoc
The limited supply of new mall space is accompanied by massive redevelopments and renovations led by major developers Ayala, SM, and Robinson Malls.
For its projects, SM Supermalls has earmarked a P150 billion budget. Ayala Malls has set aside P12.7 billion for malls located in Cebu. Robinson Malls targets to expand its malls from 55 to 69 in 2030.
Redevelopments are taking over existing malls in Ayala Malls Parklinks, Filinvest Mall Cubao, and Fishermall in Quezon City; SM Megamall and Robinsons Forum Mall in San Juan; Greenbelt 1 and 2 in Makati; and Ayala Malls Arca South in Taguig.
Outside of Metro Manila, developers are pushing development in La Union, Pampanga, Bulacan, Cavite, Iloilo, Cebu, Bacolod, and Davao. In particular, Rockwell Land is placing Power Plant Malls in Angeles, Pampanga, scheduled for completion in 2027, and in Bacolod’s retail scene.
Bondoc noted stable overall retail occupancies in Metro Manila at 11.4 percent in the third quarter, compared to 13.1 percent in the first quarter of 2025. “By the end of 2026, we will now see more vacancy at about 9.5 percent,” he added.
SM Mall of Asia complex
SM Mall of Asia complex
According to his report, the strong take-up of mall spaces was due to the influx of foreign brands occupying massive retail spaces, the return of foreign brands to the local retail scene, and the growth of F&B and fashion brands.
This year saw the opening of the third and largest store of Australian retailer Anko in Trinoma Mall, with 1,634 sqm, as well as IKEA’s first Plan and Order shop with 500 sqm. Muji opened its first flagship store in Glorietta, covering 2,600 sqm. Big box stores such as Decathlon, S&R, and Landers have also expanded their branches.
Robinsons Place Manila
Robinsons Place Manila
In 2026, Ayala will bring supermarket chain Spinneys to the country and welcome the return of wholesale retail chain Makro.
In the third quarter, F&B and fast fashion retailers also dominated the retail sector, taking 43 percent and 20 percent of the retail mix, respectively, followed by technology, fashion accessories, home, gaming, and sports.
The retail sector remains upbeat, and “one key reason we see more and more Filipinos going to malls is the inclusion of experiential, immersive retail experiences,” said Bondoc. As an example, he cited stores with sip and shop features, such as Fullybooked and Wasachi, and We The People and Tea Co. He also observed that more and more malls are providing spaces for shoppers with pets. “These concepts occupy massive retail space and entice consumers to stay longer and spend more,” Bondoc explained.

Related Tags

Colliers Philippines Joey Bondoc Ayala Malls SM Malls Robinsons Malls
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