Foreign retail brands are putting pressure on Philippine retail rents, according to real estate services firm, Jones Lang Lasalle.
Among major Asia-Pacific cities, Manila saw the highest annual rates in the second quarter of 2016, thanks to foreign brands, according to JLL.
During this period, retail rents in Manila grew by 7.9 per cent at $577 per sqm per annum, or about Php26,719 per sqm a year.
The entry and expansion of foreign and local retail brands drove Philippine retail rent up by 2 per cent.
“Local and international brands remain interested in entering or expanding in Manila,” JLL said.
American restaurant Texas Roadhouse (Uptown Mall), Singaporean brand Pezzo Pizza (Robinson’s Place Manila), and Canadian apparel brand Joe Fresh (Shangri-La Plaza) are some of the foreign brands which entered the market during the quarter.
“Notable expansions during the quarter were Baskin Robbins, Ippudo Ramen, Estee Lauder, Bobbi Brown and Kipling,” JLL said.
“Of the 18 featured markets, only two (Auckland and Manila) saw a quarterly rental increase of 1 per cent or more for the most expensive locations, while the remainder mostly recorded flat rents,” JLL said.