Growing mall culture sets the stage for more retail developments in 2017
By Amor Maclang – DECEMBER 6, 2016
http://www.businessmirror.com.ph/growing-mall-culture-sets-the-stage-for-more-retail-developments-in-2017/
FACT: shopping malls have long been part of the Filipino culture. I vividly remember that one moment when one of our team members asked my partner, Brad Geiser—an American national (who’s certainly 110 percent Filipino by heart and by passion) who has been based here in the Philippines since the early 2000s—what stood out the most to him when he first arrived in the country.
Without pausing for thought, Brad answered: “Malls here in the Philippines have always been very fascinating. I’ve never seen any place in the world where people can dine out, watch a movie, shop non-stop and hear Mass—mind you—all in one go.”
And it’s true. For most Filipinos, shopping malls are the ultimate go-to place to relax, unwind and entertain themselves. Local property developers and retail players—both local and international—acknowledge this reality, which is why experts forecast that more retail properties and developments will continue to be built by 2017.
Surging demand vis-à-vis enough supply
Based on the third-quarter Philippine Property Digest released by Jones Lang La Salle (JLL) last month, a lot of major retail developments here in Metro Manila continue to experience low vacancy rates because of the growing demand for spaces from both international and local retailers.
“Notable store openings in Q3 2016 from new international retailers were Pablo [from Japan] in Robinsons Place Manila in the Manila; Llao Llao [from Spain] in Glorietta 2 in Makati City; Rock Mountain Chocolate Factory [from the United States] in SM Megamall in Mandaluyong City; and Delsey [from France] in Glorietta 4 in Makati City,” the JLL report cited.
“Most of the expansion during the quarter came from food and beverage [F&B] retailers, such as Bahn Mi Kitchen in Power Plant Mall in Makati City; Harry’s in Uptown BGC; Ippudo in SM Mall of Asia in Pasay City; and Morganfield’s, also in MOA. Nonfood store expansions during the quarter included H&M, adidas Home Court and Birkenstock.”
During the third quarter of this year, the report adds, there were no major expansion projects from any of the big retail developers, except Filinvest Land Inc. The company recently opened a portion of its ongoing expansion efforts for Festival Supermall in Alabang, Muntinlupa, “which is estimated to add 57,000 square meters of leasable space to its current retail stock,” the JLL report added.
Overall, Ayala Land Inc. (ALI) heads the sector in terms of projects approaching completion for the fourth quarter of this year. The company is expected to finish construction works for Ayala Malls The 13th Sunrise in Pasig City, Vertis North Commercial Block (with a gross leasable area of 47,000 sq m), Southpark Alabang in Muntinlupa City, and Bonifacio High Street Central in Bonifacio Global City, Taguig.
More players keeping retail property sector abuzz Vista Land & Lifescapes Inc. is also stepping its building efforts several notches up.
The company is reportedly in the final phases of expansion for its flagship lifestyle mall—the 5-hectare Evia Mall along Daanghari Road in Las Piñas City “since it is already fully leased out with a waiting list of tenants”—a recent report revealed. The firm is expanding its footprint massively through the simultaneous construction of Phases II and III of the mall, bringing its total gross floor area to 120,000 sq m from the current 38,000 sq m.
The second and third phases of the project—which will be completed within the next two years—cost a total of about P3.6 billion and will bring 90,000 sq m more of retail space.
Federal Land, meanwhile, is also set to welcome 2017 in a big way, as it opens the Blue Wave Mall along Macapagal Avenue in Pasay City before the end of this year. The mall, according to a recent Lamudi report, will be featuring a gross leasable area of 34,000 sq m.
The same Lamudi report also cited Megaworld Corp.’s efforts in building on its initial targets of erecting 21 retail developments from 2015 to 2020. This year the company proved it’s certainly “all business,” as it opened new integrated retail properties in various parts of the country, most of which are within its newly established township developments. These include Uptown Mall in Uptown Bonifacio, BGC; Venice Grand Canal Mall in McKinley Hill, also in BGC; Plaza Magellan at Mactan Newtown in Lapu-Lapu City; and Twin Lakes between Tagaytay and Laurel, Batangas.
All these and more only paint a picture of a more exciting year ahead for the retail-development sector. Consumers are set to be spoiled for choice, that’s for sure, and developers must constantly find a way to sustain the market’s interest with an end goal of promoting a thriving real-estate development sector for 2017 and beyond.
Image Credits: Photo courtesy of Megaworld
