Philippine retail vacancy rate jumps
With more malls opening this year, Philippine retail vacancy rates are expected to rise until 2019.
By the second half of 2016, 324,000 sqm of new retail space is set to be completed in Metro Manila alone, said real estate services firm, Jones Lang Lasalle (JLL). In the first quarter of the year, Manila added approximately 140,000 sqm of retail space.
“The high volume of supply in 2016 is likely to push the vacancy rate upwards,” JLL said.
Supplies ratcheted up when Megaworld opened three of its retail developments in Taguig City this year – Uptown Place Mall, Uptown Parade, and Venice Grand Canal Mall.
Meanwhile, the entry of foreign brands and the expansion plans of local retailers are set to drive rental rates up in the coming quarters.
“Although supply of retail space is projected to increase, rents are still expected to grow moderately, supported by the continued interest of local and foreign brands to enter and expand their operations in Metro Manila,” the report said.
Food and beverage brands topped the foreign brands that entered the market. For the second half of the year, Texas Roadhouse, Denny’s, Moe’s Southwest Grill and more foreign brands are expected to open outlets.