Philippine Mall Rents Reach P1,783 per Sqm as Retail Real Estate Leads Market
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Philippine retail rents rose 1.4 percent year-on-year to 1,783 pesos per square meter a month in the second quarter of 2026, keeping prime shopping malls ahead of hotels and data centers.
The property market absorbed 26,000 square meters of new space during the three-month period, according to JLL data, while quarter-on-quarter rents edged up 0.4 percent.
Foot Traffic and Large Formats
Physical mall visits remain the core driver of commercial retail space across the country. SM Supermalls logged 1.4 billion total visits in 2025, reaching 153 million in December when holiday crowds averaged 5.5 million visitors per weekend day and 4.6 million on weekdays.
Operators continue to anchor their portfolios around these consumer flows. SM Mall of Asia spanned about 497,000 square meters of gross floor area by 2025, while competing networks from the Ayala group and grocery operators like Puregold hold steady tenant rosters in key commercial corridors.
Supply Pipeline and Experiential Shift
Across Southeast Asia, mall landlords have struggled with digital channel shifts, but Philippine operators have protected yields by converting floorplans toward dining, entertainment and social spaces. Cushman & Wakefield ranked retail ahead of hotels and data centers in the Philippine commercial real estate market in 2025, noting steady leasing demand from international brands entering prime locations.
The sector faces an influx of new physical inventory before January, with developers scheduled to complete another 160,000 square meters of retail space by the end of 2026.