Foreign retail influx shrinks NCR mall vacancy

Mall vacancy is projected to return to pre-pandemic levels this year as foreign retail brands strive to capture the interest of a populace that still prefers shopping inside physical malls, according to a report by property advisory firm Colliers.

- By DEXTER BARRO II

In its first quarter Metro Manila retail report, Colliers said the establishment of new foreign brands has resulted in lower retail vacancy and recovery in lease rates across the capital region.

Based on Colliers' data, 250,000 square meters (sqm) of new retail space were added within the period beginning the third quarter of 2024 to the first three months of 2025, with the completion of the SM Mall of Asia Expansion in the Bay Area in Manila.

The redevelopment of SM Megamall in Mandaluyong is expected to complete 270,000 sqm of additional space this year.

Colliers projects an annual delivery of 158,300 sqm beginning this year until 2027, through the likely completion of Ayala Malls Parklinks, Ayala Malls Arca South, and Filinvest Mall Cubao and the redevelopment of Glorietta and Greenbelt.