Skip to main content Skip to footer

Colliers Quarterly | Property Market Report – Retail | Q3 2021 | Philippines

Download Report
Q32021_retail_hero_image

Food and beverage (F&B) retailers should drive retail space absorption across Metro Manila beyond 2021, while a muted take-up from non-F&B retailers is expected in the next six to 12 months. The improving inoculation program should improve business and consumer confidence and this should play a crucial role in raising consumer confidence, mall traffic, and retail rents.

Colliers’ Q3 2021 Property Market Report shows that food and beverage (F&B) retailers should drive retail space absorption across Metro Manila beyond 2021. Meanwhile, a muted take-up from non-F&B retailers in the next six to 12 months is projected. Colliers also project the completion of 137,000 square meters (1.5 million square feet) in 2021, down from its previous forecast, before new supply to more than double in 2022. This is an opportunity for retailers to haggle rates and open in prime locations. The improving inoculation program should improve business and consumer confidence and this should play a crucial role in raising consumer confidence, mall traffic, and retail rents.

The easing of mobility restrictions in Metro Manila will play an important role in raising consumer traffic in malls for the remainder of 2021. The fourth quarter is perennially a strong period for retail as spending is usually fueled by employees’ holiday bonuses and increased remittances from Filipinos working abroad.

We forecast retail rents to drop by 5% in 2021 from a 10% decline in 2020. We project rents to rebound, albeit slowly, by 2022, as we anticipate a rise in consumer confidence, which should boost traffic in malls. In 2021, retail vacancy continued to rise as brick-and-mortar retailers vacate space. We project vacancy to rise to 17% in 2022 given constricted consumer spending and limited mall visits due to mobility restrictions.

DOWNLOAD FULL REPORT HERE

Q32021_retail_search_image

Colliers Quarterly | Property Market Report – Retail | Q3 2021 | Philippines

Download Report
Related Experts

Joey Bondoc

Associate Director

Research

Manila

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

View expert