Even in a post COVID-19 world, the mall is still the place to be in Metro Manila. According to Santos Knight Frank, retail vacancy fell to 4.6 percent in the second quarter which is nearing pre-pandemic levels. The recovery of retail real estate this year had coincided with more employees returning to work.
The leading real estate services company noted F&B accounted for 32.7 percent of leasing activity while clothing apparel was responsible for 32.1 percent of demand in Metro Manila. Retail real estate rents are only down 4.4 percent when comparing the second quarter of 2022 to the fourth quarter of 2019 which was the last full pre-COVID period on record.
Loosening travel restrictions, pent-up demand for consumption, high vaccination rates and a return to office were among the reasons cited by Santos Knight Frank for retail real estate’s recovery in Metro Manila. The comeback is a welcome site after a bruising two years which saw many stores close across the city.
Related: Office demand doubles in the second quarter as businesses return to work
Ayala Land predicts full malls for Christmas
Ayala Land believes mall traffic will reach pre-pandemic levels during the Christmas season barring another COVID-19 outbreak or other unforeseen restrictions. PhilStar Global reported the firm’s mall business saw a significant increase in foot traffic during the past few months.
“We see encouraging signs of recovery,” Ayala Land President and CEO Bernard Vincent Dy explained to shareholders during the firm’s annual meeting. “The company will continue to focus on its innovations to improve operating efficiency, project delivery and customer engagement as the country enters the recovery phase.”
With retail real estate picking up, the developer has announced plans to open two new shopping complexes this year. The first will be a space at the Ayala Triangle Gardens Tower 2, and the second is Vermosa Mall in Cavite.
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