F&B tenants to drive nearly half of Metro Manila retail absorption through 2028: Colliers
Food and beverage tenants are expected to account for nearly 50 per cent of Metro Manila retail space absorption from 2026 to 2028, as mall vacancy eases and international brands expand. Colliers Philippines projects vacancy will fall to 10.2 per cent by end-2026 and below 10 per cent in the first h
Food and beverage (F&B) tenants are expected to account for nearly half of Metro Manila retail space absorption through 2028 as mall vacancy continues to ease and international brands expand their local presence, according to property consultancy Colliers Philippines.
Colliers said F&B tenants are projected to make up nearly 50 per cent of retail space absorption from 2026 to 2028, making the segment the main driver of take-up over the period. Metro Manila retail vacancy improved to 10.8 per cent in the first quarter of 2026 from 11.4 per cent in the third quarter of 2025, the consultancy said in its latest report.
Colliers expects the vacancy rate to decline further to 10.2 per cent by the end of 2026 and fall below 10 per cent in the first half of 2027, returning to levels last seen before the pandemic. The consultancy said international brands are also taking larger retail spaces to accommodate flagship formats, experiential store layouts, and integrated café or specialty food concepts.
“Many foreign retailers are securing larger store footprints to accommodate flagship concepts, experiential layouts, and immersive customer experiences. Some brands are also integrating cafés and specialty food concepts into their retail formats to help drive foot traffic and increase customer engagement,” Colliers said.
The improving vacancy outlook comes as new retail supply remains below pre-pandemic levels. Colliers projects average annual retail completions of about 113,000 square metres from 2026 to 2028, roughly a third of the 332,000 sq m delivered annually from 2017 to 2019. About 96,400 sq m of new retail space was delivered between the fourth quarter of 2025 and the first quarter of 2026, including The Plaza Bagong Silang in Caloocan City, The Shoppes at Park McKinley West, Park Triangle Mall in Fort Bonifacio, and Ayala Malls Arca South in Taguig City.
Colliers said major developers are also continuing to redevelop established malls and introduce higher-end retail concepts rather than focus solely on adding floor area. “Colliers Philippines believes that the country’s leading retail developers are no longer simply adding space but are reinventing the mall experience. Beyond physical improvements, mall operators are focusing on differentiated concepts that combine shopping, dining, leisure, and community experiences within a single destination,” the consultancy said.
Redevelopment and expansion projects in Metro Manila include Ayala Land, Inc.’s Glorietta, Greenbelt 1, and Greenbelt 2, as well as projects by SM Prime Holdings, Inc. Upcoming retail completions also include Ayala Malls Parklinks, Filinvest Mall Cubao, Robinsons Land Corp.’s The Jewel and Opus Mall, and expansion projects at Fisher Mall and SM Fairview.
Colliers said similar higher-end retail formats are also emerging in key provincial markets, citing The Mall at NUSTAR, Power Plant Mall Angeles, Filinvest Malls Mimosa, Robinsons Bacolod, Power Plant Mall Bacolod, SM Nuvali, and the Ayala Malls Solenad expansion. The consultancy said slower new supply, alongside sustained tenant demand, is helping support the continued decline in retail vacancy.
