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

PHL developers tap retiree demand with golf, wellness estates

Property developers in the Philippines are integrating wellness features and golf courses into estate developments to capture demand from the growing retirement market.

Ayala Land Hospitality, which manages a portfolio of 4,000 rooms across its homegrown and luxury brands, aims to attract retirees by incorporating wellness across its leisure estates.

“We’re actually looking into that… we’re exploring assisted living, [and] all that comes with kind of our new outlook on wellness,” Ayala Land Hospitality Creative Director Paloma Urquijo Zobel de Ayala said on the sidelines of a forum hosted by the Philippine Hotel Owners Association, Inc. last week.

For its part, Filinvest Hospitality Corp. (FHC) is looking to attract the retirement market through its golf-integrated developments.

“In Mimosa, we have our Golf Ridge Estates, which is a condominium development that’s focused on the golf kind of lifestyle,” FHC Senior Vice-President Francis Nathaniel C. Gotianun said on the sidelines of the same forum.

“So, we have these kinds of leisure products that are trying to attract retirees.”

FHC manages seven hotels under brands such as Crimson, Quest, and Timberland Highlands.

Likewise, Filinvest Mimosa Plus Leisure City in Clark, Pampanga, houses two 18-hole golf courses managed by FHC.

The retirement market, which is composed mainly of former Filipino citizens and foreigners looking to settle in the Philippines, presents opportunities in the country’s residential and hospitality sectors, said David Leechiu, founder and chief executive officer of Leechiu Property Consultants, Inc. (LPC).

“The economic drivers for the retirement market are so compelling — we’ve been talking about it for 30 years,” Mr. Leechiu said in a separate briefing earlier this month.

“But why aren’t they coming? Because they are not convinced that we are ready to take them on,” he said.

As an example, he said golf courses are an effective way to “attract them [retirees] to come to the Philippines and [stay] until they are comfortable to live here.”

Mr. Leechiu also cited the need to improve the country’s infrastructure, security, and connectivity to encourage more retirees to invest and settle in the country.

About 3,812 foreigners are enrolled under the Special Resident Retiree’s Visa (SRRV), a non-immigrant visa that grants former Filipinos and foreigners aged 50 and above multiple-entry and indefinite stay privileges in the Philippines.

Data from the Philippine Retirement Authority also showed that the top SRRV applicants are Chinese, followed by Americans, Indians, and Koreans

Source: Business World

Real estate prospects clouded by new US tax on remittances

The US decision to impose a 1% remittance tax could serve to dampen property investing activity by overseas Filipino workers (OFWs), industry analysts said.

The remittance tax, a component of the Trump administration’s “One Big Beautiful Bill,” will crowd out any OFW funds earmarked for investing and shift priorities towards essentials, they said.

“While the percentage of remittances being allocated for real estate requirements is increasing, that additional tax will likely affect the inflow of remittances from Filipinos working abroad,” Colliers Philippines Director and Head of Research Joey Roi H. Bondoc said in an interview.

“This might affect the money being set aside for real estate purchases. The lower the remittances, the less will be spent for these discretionary purchases, especially in the luxury segment.”

Remittances could dip between $19.1 million and $148.4 million as a result of the tax, the Department of Finance estimated, describing these movements as having a “minimal” effect on the economy.

OFWs are a key segment of the property market, with many turning to real estate for investment income or to upgrade the living conditions of their families back home.

The decline in money sent home by OFWs would affect demand for the industry’s residential and retail offerings, Santos Knight Frank Associate Director Toby Miranda said.

“OFWs are major demand drivers of residential products, and if they were to send less money, there may be a higher risk of canceled purchases,” he said.

“Remittances from OFWs also impact the purchasing power of their families so retail demand may be impacted,” Mr. Miranda added.

Mr. Bondoc noted that Europe-based OFWs are a strong market for upscale and upper middle-income residential units, while luxury residential units are attractive to Filipinos working in Abu Dhabi.

US President Donald J. Trump on July 4 signed into law the One Big Beautiful Bill, essentially a tax bill that overhauls tax rates and spending. The 1% excise tax on all remittances represents a softening of the bill’s initial proposal to charge remittances by foreign workers 3.5%.

“Given the uncertainties in the global and domestic market, they (OFWs) might have to put these big-ticket purchases on hold, and perhaps wait a little longer before they finally acquire these residential units that they’ve been aspiring for,” Mr. Bondoc said.

Source: Business World