Mall vacancy rates in the Philippines are on track to return to pre-pandemic levels, according to a study by real estate services and research firm Colliers Philippines.

The report noted that the recovery of the retail property sector is being fueled by the entry of foreign retailers, the expansion of existing brands, and increased developer investment in both new and existing malls — particularly those located outside Metro Manila.

Colliers found that retail space vacancy in Metro Manila had eased to 11.4 percent as of end-September 2025, nearing the 9.3 percent vacancy rate recorded in the third quarter of 2019, just before the COVID-19 pandemic hit.

The firm attributed the steady rebound to the arrival of international brands such as Anko, Bath & Body Works, DALI Everyday Grocery, and Alo Yoga, all of which have entered the Philippine market within the past five years. Their presence, alongside the expansion of popular dining brands like Olive Garden and Texas Roadhouse, as well as homegrown concepts such as Pickup Coffee, has helped revive consumer appetite for in-person shopping and dining.

Colliers projects that mall vacancy could drop further to 8.2 percent by 2027, surpassing pre-pandemic occupancy levels. This improvement is expected to be supported by sustained investments from major property developers including SM Prime Holdings and Ayala Malls, both of which have announced plans for new developments and redevelopments extending beyond the capital region.

Colliers Philippines is the Philippine branch of Colliers International, a global real estate services and investment management company headquartered in Toronto, Canada. The company provides market research, advisory, and management services related to property and real estate.