Corruption-tainted construction industry placed under DTI supervision

Trade Secretary Cristina Roque has assumed direct supervision of the Construction Industry Association of the Philippines (CIAP) “to restore integrity and transparency” amid allegations of irregularities in contractor accreditation.

In a statement on Wednesday, Roque said CIAP and its implementing boards, including the Philippine Contractors Accreditation Board (PCAB), would be placed under her direct supervision.

“Placing them under my direct supervision will ensure that order, transparency and accountability is restored within these agencies,” Roque said.

“Full transparency and cooperation are mandatory, and those who breach the trust and mandate entrusted to us will be held accountable,” she added.

Cleanup imperative

Roque said earlier the DTI would do a “major cleanup” at the PCAB, as the agency initiated a comprehensive investigation into numerous allegations of conflicts of interest, accreditation irregularities and potential abuses of authority.

The agency will thoroughly review the conduct of current PCAB members and officials and submit recommendations to President Marcos, including their potential removal from their posts.

PCAB is an attached agency of the DTI and one of CIAP’s implementing boards, tasked with promoting, accelerating and regulating the construction industry’s growth and development.

F&B tenants drive the next wave of retail development

The Philippine retail sector is on the upswing, with the food and beverage (F&B) sector driving the charge.

At present, revenues from F&B retailers have already exceeded pre-pandemic levels by 11 percent, outperforming other categories and solidifying the sector’s role as a key anchor in retail real estate recovery.

This resurgence is reshaping leasing strategies, guiding mall design, and influencing expansion priorities among both local and international brands.

Surpassing pre-pandemic performance

Based on our latest research, the country’s top three mall operators recorded a 19 percent increase in overall revenues compared to 2019.

Leading that growth is the F&B segment, which has not only bounced back but emerged as a core driver of mall traffic and tenant performance. This growth reflects the return of discretionary consumer spending and the cultural significance of dining out in the Philippines.

As more Filipinos seek out shared experiences in public spaces, F&B concepts have become critical to reactivating foot traffic and increasing dwell time.

Experience-driven demand

Unlike other retail categories that continue to shift toward e-commerce, F&B thrives on in-person experiences.

Restaurants, cafés, dessert shops, and quick-service formats benefit from their ability to create atmosphere, community interaction, and lifestyle value that cannot be replicated online.

This dynamic made F&B tenants essential in newly designed malls and mixed-use developments, which increasingly prioritize open air dining, lifestyle zones, and community integration. The demand for experiential retail has also contributed to higher lease absorption in prime malls and neighborhood retail centers.

Strategic expansion across growth areas

As of the first quarter of 2025, there are 105 new malls under development across the Philippines, many of which include expanded F&B provisions in their design and tenant mix.

While Metro Manila remains a key target for flagship dining brands, developers are actively integrating food-centric zones into new projects in Central Luzon, Calabarzon, Visayas, and Davao.

These regions are witnessing rising population density, improved road infrastructure, and growing consumer demand—all of which support sustained F&B activity. Retailers are responding with aggressive site acquisition strategies in regional malls, townships, and transport-oriented developments.

The demand for experiential retail has also contributed to higher lease absorption in prime malls and neighborhood retail centers.

Leasing implications

F&B’s dominance has altered how developers and landlords approach leasing.

Retail centers now prioritize food clusters, allocate prime frontage to dining concepts, and offer flexible fit-out terms to attract high performing tenants.

This has created competitive leasing conditions, particularly for brands with strong concepts and proven track records. Landlords are becoming more selective, seeking operators who can deliver consistent foot traffic and align with the broader vision of next generation retail environments.

What’s ahead for F&B retail growth

As the Philippine retail sector continues to recover and evolve, F&B will remain a cornerstone of growth. Its ability to combine experience, social interaction, and consumer loyalty makes it one of the most resilient and adaptive segments in the market.

Given the robust mall pipeline and sustained demand for dining experiences, the appetite for F&B real estate is only expected to grow.

For F&B operators planning to expand, working with a knowledgeable property consultant can provide critical support—from identifying high-traffic locations and evaluating mall pipelines to securing lease terms that fit both operational needs and long-term brand strategy.

In a competitive and fast moving retail environment, informed guidance can help businesses grow with confidence.

Source: Inquirer

Building permit approvals inch up in May

Approved building permits picked up 1.1% year on year in May due to the modest growth in residential construction projects, the Philippine Statistics Authority said in a report.

Preliminary data showed building projects covered by the permits numbered 16,282 in May from 16,105 a year earlier.

This was slightly higher than the 0.6% growth in May 2024 and the revised 8.2% decline in April.

In May, constructions projects covered 3.22 million square meters (sq.m) of floor area, down 17.8% year on year from 3.92 million sq.m.

These building projects that received approval were valued at P42.09 billion, 22.7% lower than a year earlier when it reached P54.48 billion.

The increase in construction signifies growth in economic activity, Emmanuel J. Lopez, professorial lecturer at the University of Santo Tomas Graduate School, said in an e-mail.

“Specifically, a positive increase in investment spending ultimately leading to increase in employment buoyed by increase investment,” he said.

Permits for residential projects, which accounted for almost 70% of the total, rose 10.4% in May to 11,331.

These projects were valued at P21.25 billion, down from P25.67 billion a year earlier.

Applications for apartment buildings climbed 31.7% to 1,397 while applications for duplex or quadruplex homes nearly tripled to 250.

Single homes, which accounted for 85.3% of the residential category, grew 6.3% year on year to 9,664.

On the other hand, nonresidential projects slumped 14.9% year on year to 2,930 permits from 3,443 in May 2024. This accounted for 18% of the total.

Nonresidential projects represented by the permits were valued at P16.80 billion, declining 23.2% from a year earlier.

Meanwhile, approved commercial construction applications contracted 14.5% to 1,994. These made up 68.1% of all nonresidential projects.

Institutional building permits plunged 23.9% to 488, while industrial permits inched up 0.8% to 264.

In May, approved agricultural projects fell 20.7% to 96 while other nonresidential projects picked up 2.3% to 88.

Permits for additions, or construction that increases the height or area of an existing building, declined 17.3% to 546 approvals.

On the other hand, alteration and repair permits totaled 1,086 in May 2025, 17.6% lower from a year earlier and were valued at P2.61 billion.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved construction projects in May 2025 accounting for 25% of the total with 4,063 permits.

This was followed by Central Luzon (20.2% share with 3,290 permits), and Ilocos Region (8.8% share with 1,425 permits).

Mr. Lopez said that the increase in employment will lead to increase in consumption spending which is a major component of the country’s economic growth.

Source: Business World