Local brands close retail space, foreign brands enter Philippines market
The food and beverage (F&B) retail category continues to have the most activity in both store openings and closings
“The retail sector saw more store openings than closings in the last quarter of 2022, with move-ins from several foreign brands,” says Janlo de los Reyes, JLL Philippines’ Head of Research and Strategic Consulting.
Store openings totaled 49.8k sqm of space while closures totaled 22.3k sqm for the whole of 2022.
The effect of holiday surge
The holiday surge drove retail store openings in the last quarter of 2022, which carried over to the first month of 2023.
Foreign brands such as Mitsukoshi, Decathlon, No Brand, and True Value opened new stores, while brands such as Feta Mediterranean, PaperMoon Café, and Levi’s saw store closures or move-outs.
Move-ins and move-outs: top retail categories
The food and beverage (F&B) retail category continues to lead both move-ins (openings) and move-outs (closures). The last quarter also saw many local brands across different retail categories move-out.
Metro Manila mall store openings and closures by retail category
Vacancy levels and rents
Despite new supply, vacancy levels declined. Vacancy levels last quarter are down to 5.1% (32.7 bps) in comparison to 2021. However, this is still far from pre-pandemic levels (around 3 to 4%).
With leasing activities accelerating, rents also rose. The average rent per sqm per month is now PHP1,705, which shows a 9.3% increase from the previous year.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $20.9 billion, operations in over 80 countries and a global workforce of more than 103,000 as of December 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.