The Philippine retail sector continues to gain momentum in 2025, with mall traffic and tenant performance showing strong post-pandemic recovery. As foot traffic returns to pre-pandemic levels and even exceeds them, retail leasing strategies are evolving to meet renewed consumer demand and shifting occupier priorities.

This rebound is not only widespread but sustainable, supported by robust fundamentals and long-term expansion plans.

Mall Traffic Hits a New High

Foot traffic has proven to be one of the clearest indicators of retail revival. SM malls recorded 3.8 million daily visitors in 2024, up from 3.6 million in 2023 and more than double the 2021 pandemic low of 1.5 million. Ayala Malls also reported a steady rise, with more than 10% growth from 2023 to 2024.

This surge reflects strong consumer re-engagement with physical spaces and highlights the mall’s enduring role as a commercial and social destination in the post-pandemic era.

F&B and Experience-Centric Tenants Lead Demand

While overall demand is strengthening, leasing activity is particularly strong among food & beverage (F&B) and experiential retail concepts. This aligns with broader consumer trends that favor social interaction, in-person dining, and lifestyle experiences that cannot be replicated online.

Listed F&B operators posted record sales in 2024, with Jollibee Foods Corporation (JFC) alone generating ₱390.28 billion, followed by SSI (₱29.92 billion), Shakey’s Pizza (₱21.74 billion), and Max’s Group (₱18.75 billion). These numbers support the trend of F&B tenants becoming primary foot traffic drivers and core leasing targets for developers.

Prime Locations and Flexible Formats in Focus

With leasing momentum returning, developers are actively restructuring retail footprints. Malls are prioritizing flexible leasing formats, integrated lifestyle zones, and open-air layouts to accommodate shifting tenant expectations.

The total mall footprint has now reached 18.3 million sqm across 538 malls, with the National Capital Region (NCR) accounting for 48% of total GLA. However, growth is also accelerating in Luzon (27%), Visayas (15%), and Mindanao (10%), as developers broaden their reach into emerging markets.

This signals increasing demand for provincial leasing opportunities, especially in fast-urbanizing regions where modern retail formats are still expanding.

Aggressive Expansion Reflects Occupier Confidence

Retail developers are signaling confidence in long-term demand by committing to growth. A total of 105 new malls are planned nationwide, underscoring the strong leasing appetite among both anchor and specialty tenants.

With systemwide sales among select listed retailers reaching ₱460.7 billion in 2024, reflecting a 155% increase from 2019 levels, occupiers are actively seeking prime locations to capture this resurgence in spending.

What to Watch Moving Forward

As mall traffic reaches its strongest levels in years, retail leasing will continue to be shaped by:

Demand for high-traffic, well-integrated locations
Emphasis on experiential, lifestyle, and dining-driven formats
Increased regional leasing activity outside Metro Manila
Stronger competition for space in top-performing malls

For developers and tenants alike, agility in site planning, brand positioning, and leasing strategy will be key to capturing growth opportunities in today’s retail landscape.

Exploring retail expansion in a rapidly evolving market? We provide data-driven insights to support site selection, lease structuring, and market entry strategies across key growth areas. Email us at inquire@leechiu.com for expert guidance.