By Bilyonaryo
Expansion by Philippine food and beverage chains drove Metro Manila’s retail vacancy rate down to 5.61% in the second quarter, even as intensifying competition forced many smaller operators to close stores, property consultancy Jones Lang LaSalle (JLL) said.
Food and beverage was the most active retail segment during the quarter, recording both the highest number of store openings and closures as established local brands expanded while weaker players exited the market.
Store openings reached about 64,000 square meters, the highest since JLL began tracking the market in the first quarter of 2022, while closures rose to around 30,000 square meters.
The stronger leasing activity helped boost mall occupancy, with new market entrants accounting for only 5,500 square meters of leased space, indicating that demand came primarily from existing retailers expanding their footprints.
“Majority is really driven by expansion sites of already present brands in the Metro,” JLL Philippines Head of Research and Advisory Janio De los Reyes said.
He said the rapid expansion of larger homegrown food and beverage brands had also intensified competition, pushing smaller operators out of the market.
“A lot of the smaller brands are getting pushed out by the bigger brands,” De los Reyes said.
Among Metro Manila’s major retail markets, Quezon City and Mandaluyong posted the lowest vacancy rates at 4% each. Quezon City, however, continued to have the largest mall inventory and, consequently, the biggest amount of vacant retail space.
Average retail rents rose to P1,789 per square meter a month, with the highest rates recorded in Mandaluyong and Pasay, followed by Makati at P1,900 and Taguig at P1,700.
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