Retail reinvention keeps malls in the game
Retail has long been part of everyday life in the Philippines, serving leisure and practical needs. As a dynamic industry, it continues to evolve alongside changing consumer preferences, economic conditions and technological advancements.
Significant impact
Today, the pace and scale of that transformation are unprecedented, with retail also making a significant impact on real estate.
A 2026 report from international real estate services firm Cushman & Wakefield found retail leading the Philippine property market in 2025, ahead of hotels and data centers.
In July 2025, the same firm reported that Philippine retail remained highly attractive despite global market uncertainties, drawing interest from international brands. Prime shopping centers were expected to stabilize first, supported by their adaptability and capacity for reinvention.
According to real estate services company JLL, approximately 26,000 sqm of retail space entered the market in the second quarter of 2026, adding to available inventory. Another 160,000 sqm are expected to be delivered by yearend.
Leisure landmarks
Some of the most popular retail spaces in the country include malls, supermarkets and mixed-use developments.
The SM and Ayala groups are among the country’s biggest retail players, with their malls serving as major destinations for shopping, dining and leisure. Supermarkets like Puregold have likewise become familiar names in everyday retail.
Among the country’s largest malls by gross floor area is SM Mall of Asia, with about 497,000 sqm of gross floor area (GFA) as of 2025.
With average retail rents reaching P1,783 per sqm per month in the second quarter of 2026, up 0.4 percent quarter-on-quarter and 1.4 percent year-on-year, demand for prime malls remained solid. Sustained interest in the sector continues to support the broader real estate market as occupancy and demand remain healthy.
Shared public spaces
Malls, for one, have long been a core part of leisure in the Philippines. As shared public spaces, they reflect how people move and connect, bringing together different generations and experiences under one roof.
Given their place in everyday Filipino life, malls also play a major role in the retail property market.
And the numbers bear that out. SM Supermalls alone recorded 1.4 billion visits in 2025, with traffic peaking at 153 million in December. During Christmas season, daily visits averaged around 5.5 million on weekends and 4.6 million on weekdays, showing how strongly malls continue to draw consumers even as shopping habits evolve.
Malls’ major draws
A recent report from Cushman & Wakefield further noted that retail supply growth in the Philippines remains measured in 2026, with experiential retail and mall repositioning continuing to shape demand.
Indeed, today, appealing mall design has become a necessity in an increasingly competitive real estate market. Accessibility, ease of navigation and the strategic placement of stores and amenities help improve customer flow and strengthen a mall’s overall appeal.
And as awareness of environmental issues grows, sustainability has also become increasingly important. In commercial spaces, eco-friendly materials, energy-efficient systems and designs that reduce environmental impact can enhance a property’s long-term competitiveness.
Sources: Inquirer archives, jll.com, cushmanwakefield.com, smprime.com, www.filinvestland.com, asiapro-distribution
