Mall vacancy is expected to rise to 17 percent in 2022 with the completion of new centers and Filipinos’ growing preference for online shopping, according to property consultancy firm Colliers International Philippines.
Colliers, however, expects rents to slightly recover next year on the back of an improved vaccination program and a government-projected economic recovery that should spur spending.
“We are optimistic that the relaxation of lockdowns across Metro Manila will encourage more consumers to visit malls and spend. In our view, holiday spending, higher OFW remittances, and the reopening of more businesses are likely to pump-prime the retail sector beyond 2021,” Collier associate director Joey Roi Bondoc said.
“Consumer traffic is unlikely to revert to pre-pandemic levels by fourth quarter of 2021, but the improving inoculation program should inject a much-needed boost to and jumpstart the retail segment’s much-awaited recovery. Revenge shopping and dining should anchor mall operations’ rebound,” he said.