According to Colliers Philippines, retail spaces are seen to recover the fastest in the property market due to the reopening of the economy and easing of mobility restrictions.
Colliers Philippine managing director Richard T. at a briefing on Thursday. “Retail sales in the property sector will return the fastest, sales will return to pre-epidemic levels,” Remundo said.
“We’re seeing greater consumer traffic, with mall operators saying 60% of mall traffic is back … so it should be positive to exploit mall space,” said Colliers Associate Director Joey Roi H. Bondoc.
In its first-quarter report, the property adviser said it expects retaliatory purchases, which will accelerate the growth of the retail sector.
“Colliers are watching closely for the return of malls as de facto public spaces in the Filipinos, especially now that consumer traffic is returning to pre-coveted levels and restaurants and activity centers are beginning to welcome more guests,” the report said.
“In addition to vengeance shopping and dining, which we project to launch in the second quarter, we are seeing more opportunities in the market given the tendency of mall operators and retailers to innovate in a liberal play area,” it added.
Colliers estimates the new supply will reach 409,000 square meters (sqm) in 2022. From 2022 to 2025, it sees an annual supply of about 250,500 square meters. New supplies.
Among the sectors, it is leading food and beverage (F&B) retailers to take physical place for the rest of 2022.
“We plan to increase demand for non-F&B segments such as clothing and sportswear,” it says.
From 2022 to 2025, the firm estimates the completion of new retail space in business districts such as Makati CBD, Fort Benifacio, Bay Area and Araneta Center, which will probably cover 58% of the new supply.
In the first quarter, retail vacancies continued to grow, albeit at a slower pace of 15.2% in Metro Manila.
“Despite the threat of Omicron variants and low consumer traffic in January 2022, some retailers have announced the opening of stores in selected super-regional malls,” Colliers said.
By the end of the year, the firm expects retail vacancies to reach 16%, slightly lower than the 17% vacancy forecast.
“While this is still 9% to 10% higher than the pre-epidemic void in Metro Manila, the slight improvement indicates that a slow rebound has begun for the brick-and-mortar retail segment of Metro Manila although its popularity has brought constant challenges. The potential threat of online shopping and a new Covid variant, ”said the property consultant.
In terms of retail rents, Colliers said it has seen a gradual recovery of about 1% from increasing 15% in 2020 and 2021.
It said a gradual pickup in retail space exploitation by the end of 2022 would partially support the projected rebound at the lease rate, as more retailers will be encouraged to take the place of physical malls as consumer traffic begins to improve.
“Colliers sees a pickup at considerable expense as consumer confidence improves and mall entry returns to pre-COVID levels. Election-related spending will have to contribute to the increase in family spending in order to lead to the May 9 national election. Through liberalization of retail trade and enactment of foreign investment legislation, we expect more foreign retailers to enter, ”said Mr Bondak.
“This should be chipped in for greater retail space, greater diversity of offers and differences between mall operators that will ultimately return to the benefit of Filipino customers,” he added. – Luisa Maria Jacinta c. Jackson