From elevated vacancy to post-COVID vibrancy: What's driving retail's resilience

Despite slower personal consumption expenditure in the first nine months of 2025, malls across Metro Manila continue to record healthy occupancy levels.

- By JOEY ROI BONDOC

Mall operators have been proactive in refreshing their retail spaces, and this contributes to a stronger take-up of physical mall space across the capital region. Major developers have been earmarking billions for the reinvigoration of their retail centres, and this enormous retail capex is also likely to benefit other growth areas outside Metro Manila.

Colliers Philippines believes that ramping up omnichannel retail strategies is a must these days. Online and brick-and-mortar retail spaces should continue to complement each other, especially with the influx of foreign retail brands in the Philippines.

Colliers encourages mall operators and retailers to take advantage of the traditionally strong fourth quarter to lure more consumers to stay longer and spend more in malls. A sustained retail space absorption is essential in ensuring that Metro Manila's mall vacancy reverts to the pre-pandemic level by the end of 2026.

Colliers expects sustained take-up from foreign clothing and home furnishing retailers. Food and beverage (F&B) brands are likely to remain the primary drivers of physical mall space take-up over the next 12 months.