Malls still 'healthy' despite slowing consumer spending

PHILIPPINE MALLS' occupancy levels are still "healthy" despite slowing consumer spending, according to real estate consultancy firm Colliers Philippines.

- Beatriz Marie D. Cruz

"Despite slower personal consumption expenditure in 9M (first nine months of) 2025, malls across Metro Manila continue to record healthy occupancy levels," Colliers said in its Third-Quarter Retail Market Report.

The vacancy rate of malls in Metro Manila stood at 11.4% as of the third quarter, the lowest since the 9.7% recorded in the first quarter of 2020, according to Colliers data.

"We recorded significant take-up from recently completed malls including GH Mall, Gateway Mall 2 and the SM Mall of Asia Expansion," it said.

Colliers said it is maintaining its forecast that malls' vacancy rate will likely return to pre-pandemic levels by the end of 2026.

"The Philippine retail scene continues to innovate, effectively exciting mallgoers and foreign brands. With retail spaces becoming more experiential, more Filipinos now go to brick-and-mortar malls and are enticed to stay longer and spend more," Colliers Philippines Director and Head of Research Joey Roi H. Bondoc said in the report.

Colliers projects mall vacancy in Metro Manila to fall to 9.5% by the third quarter of 2026. By the first quarter of 2027, it expects vacancy rate to ease to 8.2%, surpassing the 9.3% vacancy rate posted in the third quarter of 2019.