Property developer Ayala Land Inc. is seeing strong early returns in its mall renovation program, with higher lease rates and increasing sales.
The upgrades of TriNoma, Glorietta, Greenbelt and Ayala Center Cebu—now 40-percent to 60-percent complete—are showing signs of growth, boosting tenant confidence, according to Mariana Zobel de Ayala, senior vice president and head of leasing and hospitality at Ayala Land.
“The renovations are on track, and it’s creating a lot of excitement with tenants,” Zobel de Ayala said.
ALI announced last year plans to renovate and re-invent four flagship malls to increase their total gross leasable area by 400,000 square meters.
As new retail concepts are introduced, some mall areas have seen significant sales increases.
“With some of the [leasing area] that we’ve already replaced with new concepts, we’ve seen sales double for those, in some cases more,” Zobel de Ayala said.
The renewed interest from shoppers is reflected in the leasing market as well, with Ayala Land increasing rent by 15 percent to 20 percent.
Zobel also reported a 10-percent growth in foot traffic last year.
With these early gains in lease rates and sales, Ayala Land is confident in the success of its renovation program and the long-term potential of its retail portfolio.
Zobel de Ayala said that 30,000 square meters of mall space would be refreshed this year, focusing not only on physical upgrades but also on programming and experiences that attract consumers.
The renovations signal a broader commitment to expanding Ayala Land’s retail presence, with 78,000 square meters of new retail space set to open in 2025.
These include phase 1 of Vermosa in Cavite, Park Triangle in Bonifacio Global City and first phases of Solenad 4 in Sta. Rosa and Arca South.
Zobel de Ayala said the group’s newly-opened malls like One Ayala and Manila Bay have also been doing well.
She said ALI has about 700,000 sq. m. of mall space under planning or construction.
“We have a lot of conviction in the market. We have a lot of conviction in the Filipino consumer,” she said.