manila - cushman & wakefield

0Cushman & Wakefield | Manila | 2019

MANILACushman & Wakefield

Global Cities Retail Guide


MANILA

OVERVIEW

Metro Manila, the country’s capital

region, consists of 16 cities and one

municipality. This includes the

country’s most populated city,

Quezon City, and the primary

financial and business hubs, Makati

Central Business District and

Bonifacio Global City in Taguig City.

As of 2018, Metro Manila has more than 100 operational

shopping centers, with eleven (11) more anticipated for

completion up to year 2022. The region is home to three

(3) of the largest shopping malls in the Philippines,

namely: SM City North EDSA in Quezon City, SM

Megamall in Mandaluyong City, and SM Mall of Asia in

Pasay City.

FACTS ABOUT METRO MANILA:

12.88 million (2015 Census) total population

4.8 million total foreign visitor arrivals via Manila airports

and seaports in 2018

7.9 million sqm approximate existing retail space in

shopping centers and malls in Metro Manila as of 2018.


BAY AREA

The Bay Area along the coast of Manila Bay stretches from

Parañaque City to Pasay City. With healthy a demand coming

from offshore gaming, IT-BPM, and retail segments, it is home to

one of the country’s biggest retail complexes, the SM Mall of

Asia (MOA). The MOA complex is a place to a number of offices

and residential properties, while its mall is set to become one of

the world’s biggest after its planned expansion. Recently, Ayala

(a leading developer of real estate in the Philippines) launched

Ayala Malls Bay Area in Parañaque City. The first phase of which

is expected to start operation by the end of 2019.

MANILAKEY RETAIL STREETS & AREAS

QUEZON CITY

Quezon City, being the largest and most populous city across the

country, has a lot of major developments. The major shopping

malls include SM City Fairview, SM City North EDSA, and

Ayala’s TriNoma – the last two malls are situated across each

other along the major highway, EDSA. Adjacent to TriNoma is

Ayala’s emerging district, Vertis North. Its mall opened its doors

to the public in 2017. The presence of IT-BPM offices in Vertis

North, as well as a hotel, drives traffic not just to Vertis North Mall

but also to the adjacent shopping centers including the high

street type development called Centris Walk. Araneta City, a

mixed-use commercial area, also hosts several retail

establishments namely Ali Mall and Gateway Mall. Moreover,

Ayala completed the second phase of another retail development

in the area in 2016 – the UP Town Center in Katipunan, which

doubled the development’s capacity, while Robinsons Magnolia

is set to open a new wing by the end of 2019.

ORTIGAS CENTER

Ortigas Center is a secondary business district spanning across

the cities of Pasig, Mandaluyong, and Quezon. One of the

largest malls—both locally and globally—is SM Megamall, which

expanded with its Fashion Hall in 2013. In close proximities are

Shangri-La Plaza Mall and the newly renovated Robinsons

Galleria and Podium Mall. These shopping malls generally have

high footfall aided by the easy access to various modes of public

transportation. In 2017, Ayala Malls established its first presence

in Ortigas through Ayala Malls the 30th.

MAKATI CITY

Ayala Center Makati continues to be a bustling shopping district

and a key development in the financial district that is Makati

Central Business District (CBD). Its shopping malls include

Greenbelt, Glorietta, SM Makati, and Landmark. Pedestrians can

easily walk from one mall to another through numerous bridges

and pathways. Ayala Center Makati also serves as a major

transportation hub. The area is a main stop for the premium

point-to-point (P2P) bus service, and also provides access to the

Metro Rail Transit (MRT) system. Also within Makati City are

bustling mixed-use developments, with popular shopping malls

known as the Powerplant Mall– a high-end retail establishment in

Rockwell Center and the Century City Mall within the Century

City complex.

BONIFACIO GLOBAL CITY (BGC)

Bonifacio Global City has attracted a lot of office relocations,

proving itself as a popular business district among multi-national

companies and financial institutions, among others. Apart from

its office buildings and upper-mid to high-end residential

developments, retail establishments can be found sprawled over

the area. BGC is home to the country’s first high street type

development, the Bonifacio High Street. Uptown Bonifacio,

Megaworld’s township, is also located in BGC and has its own

mall and an adjoining Uptown Parade retail strip. Also within

BGC are Ayala Malls’ Market! Market!, completed in 2003 and

SM Supermalls’ first high-end concept mall, SM Aura Premier,

completed in 2013.


MANILAMARKET OVERVIEW

KEY AREAS/

STREETS/

SHOPPING

CENTERS

CONSUMER

PROFILE

MAJOR RETAILERS

PRESENTNEW ENTRANTS

AVERAGE

GROUND FLOOR

RENT

TYPICAL

RANGE OF UNIT

SIZES

Makati City Class A, B, and C

H&M, Uniqlo, Forever 21, Zara,

Mango, Louis Vuitton, Gucci,

Starbucks Reserve, Crate &

Barrel

Tiffanny & Co, John Lobb

Bootmaker, Off-White, Vera

Wang

2,300 PHP/ SQM/

MONTH45 – 100 SQM

Pasig-Mandaluyong City Class A, B, and CZara, H&M, Forever21, Crate &

Barrel, Uniqlo, Gucci

At Tokyo, Popeyes, Travelon,

Innisfree, KVIK

2,000 PHP/ SQM/

MONTH45 – 100 SQM

Taguig City Class A, B, and CUniqlo, Pottery Barn, Mango,

Forever 21, Bench

Puma Select , Mr. DIY , M

Bakery, Shake Shack, Aigle,

Malongo, Elephant Grounds

2,100 PHP/ SQM/

MONTH45 – 100 SQM

Quezon City Class A, B, and CH&M, Uniqlo, Forever 21,

Bench, Penshoppe

Presotea , Anello, Legato Largo,

Baseus, Club Clio

2,300 PHP/ SQM/

MONTH45 – 100 SQM

Pasay City Class A, B, and CForever 21, Uniqlo, H&M, Cotton

On, Zara

The Alley, FitFlop Galleon, Jim’s

Recipe, Specialized

2,000 PHP/ SQM/

MONTH45 – 100 SQM


TRINOMA

Ayala’s TriNoma mall, completed in 2007, is located in

Quezon City. It is one of the most popular places in the

city, which can be easily accessed by foot from adjacent

developments, SM City North EDSA and the rest of

Ayala’s Vertis North district. It also hosts various transport

terminals, being bounded by EDSA, Mindanao Avenue,

and North Avenue, and is connected to the MRT system.

SM MEGAMALL

SM Megamall is currently the second largest shopping

mall in the Philippines and places among the world’s

largest malls. The mall has three (3) adjoining buildings

with a total floor area of 474,225 sqm. Since the opening

of its Fashion Hall, the mall hosts flagship stores of

various foreign retailers, including H&M, Uniqlo, and Zara.

The mall is popular for its large selection of retailers and

its central location. It is easily accessible through public

and private transportation. While IT-BPM companies, such

as Convergys, have been locating in Megamall since

2012, SM is dedicating a separate building for more

companies to locate there. This new building is called

Megatower and will be completed in 2020.

MANILASHOPPING CENTERS

SHANGRI-LA PLAZA MALL

Shangri-La Plaza Mall is an upscale mall development by

Shang Properties within Ortigas Center. It is adjoined to

Edsa Shangri-La Hotel and is surrounded by a number of

high-rise residential buildings, providing a steady source

of mall-goers. Luxury brands have established their

flagship stores mostly in the mall’s newer east wing. Some

of these brands are Gucci, Alexander McQueen, and

Givenchy.

SM CITY NORTH EDSA

SM City North EDSA is located in Quezon City and has a

floor area of approximately 498,000 sqm. To date, it is the

country’s largest mall and one of the major shopping

destinations in the city, which has been constantly

expanding from its initial operations in 1985. Since then,

SM City North EDSA saw the addition of The Block in

2006, The Annex in 2008, Sky Garden in 2009, and The

North Towers in 2018. Like other SM malls, SM City North

EDSA will dedicate a building to office relocations which

will boost its visitor traffic.


GLORIETTA

Glorietta is one of Ayala’s central developments in Makati

CBD. It is a mall complex consisting of four interconnected

sections (Glorietta 1, 2, 3, and 4) and a separate block

called Glorietta 5. The mall is directly connected to SM

Makati and Landmark and has an access point to the

MRT. Its last redevelopment was in 2012 after the

overhaul of Glorietta 1. It has maintained its popularity to

this day and is surrounded by office buildings, hotels, and

residential developments.

SM MALL OF ASIA

The SM Mall of Asia is among the world’s largest malls

with an existing floor area of 432,819 sqm. Its massive

expansion plan that will add 250,000 sqm to its size upon

completion will establish it as the largest mall locally with a

floor area of approximately 682,819 sqm. It is centered

among SM’s other developments, including its office

complex and condominiums. It has an adjoining events

venue often hosting large conferences, as well as an

arena for performance shows. The neighboring

entertainment district and tourist destination make it an

ideal stop for visitors and locals alike.

MANILASHOPPING CENTERS

BONIFACIO HIGH STREET (BHS)

Ayala’s Bonifacio High Street is located in BGC and is the

first of its kind in the country. It utilizes the retail street

concept and is a flagship project of Ayala Land Inc (ALI). It

opened in 2007 and expanded in 2012 with Bonifacio High

Street Central – a combination of open-air retail street and

indoor retail concepts. In 2018, One Bonifacio High Street

retail was opened, which serves as a podium of the

Philippine Stock Exchange Tower and a residential

condominium called the The Suites @ One Bonifacio High

Street. BHS exists across Ayala’s residential

developments, One Serendra and Two Serendra.

GREENBELT

Greenbelt is also an anchor development of Ayala in

Makati CBD. It is also comprised of five buildings,

Greenbelt 1, 2, 3, 4, and 5. Each building caters to a

specific demographic from mid-range to luxury brands. It

also has various food options from casual to high-end

dining. It was designed to have a significant amount of

open space, with lots of verandas and gardens as part of

its park-like ambience.


MANILA

NEW DEVELOPMENT

TO WATCH

DEVELOPMENT TO WATCH OUT FOR

GATEWAY MALL 2&3

ARANETA CYBERPARK, QUEZON CITY

Total Size (Sqm) ~220,000

- Retail GLA N/A

- Leisure/Entertainment

GLAN/A

Planned Opening Date2020 (Gateway Mall 2)

TBA (Gateway Mall 3)

Consumer Profile Class A, B, and C

ABOUT THE DEVELOPMENT

An expansion project to master-planned BPO district

that will double the retail space of the first Gateway Mall

and hotel developments. Gateway Mall 2 is adjacent to

the planned Ibis Styles Hotel.


The retail sector continues to be

largely dominated by the Food and

Beverages (F&B) segment, which

accounts for 60% of the tenant mix of

shopping malls.

The popularity of F&B concepts lures foreign brands to

venture into the local scene as it shows that 42% of the

new foreign brand entries in the past two years are from

the segment. New entrants are mostly Asian brands,

which include The Alley, Menya Kokoro, Elephant

Grounds, Honolulu Café, and Tiger Sugar Bubble Tea.

Noteworthy new entrants with western concept include

Shake Shack, Popeyes, and Pizza Express.

MANILAFOOD & BEVERAGE

KEY

AREAS

CONSUMER

PROFILEFOOD & BEVERAGE OPERATORS

ESTIMATED AVERAGE

GOUNDFLOOR RENT

Makati City Class A, B, and CSaladStop!, TWG Tea, Bulgogi Brothers,

Chili’s, Saboten, Toby’s Estate2,300 PHP/ SQM/ MONTH

Pasig/

Mandaluyong

City

Class A, B, and CIppudo, Tim Ho Wan, Din Tai Fung,

TuanTuan, Maisen2,000 PHP/ SQM/ MONTH

Taguig City Class A, B, and CTim Hortons, M Bakery, Nadai , Pizza

ExpressFujisoba, M Bakery, Shake Shack2,100 PHP/ SQM/ MONTH

Quezon City Class A, B, and CBakers Maison, Presotea, Macao Imperial

Tea, Dohtonbori2,300 PHP/ SQM/ MONTH

Pasay City Class A, B, and CThe Alley, Dohtonbori, Paradise Dynasty,

Modern Shanghai, Jim’s Recipe2,000 PHP/ SQM/ MONTH

Majority of these F&B operators are drawn towards the

thriving business districts of Bonifacio Global City and

Makati CBD to take advantage of high foot traffic especially

from the young working population. Nonetheless, dining out

options are increasing even outside of the CBDs, especially

as foreign food brands have increased their presence all

over Metro Manila.

No warranty or representation, express or implied, is made to the

accuracy or completeness of the information contained herein, and the

same is submitted subject to errors, omissions, change of price, rental

or other conditions, withdrawal without notice, and to any special

listing conditions imposed by our principals.

© 2019 Cushman & Wakefield LLP. All rights reserved.

TETET CASTRO

Director, Tenant Advisory Group

Cushman & Wakefield Philippines, Inc.

9th Floor Ecotower

32nd Street corner 9th Avenue

Bonifacio Global City, Taguig City

Metro Manila, Philippines

Tel: +63 2 554-2927

Email: [email protected]

mailto:[email protected]

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