Colliers International sees pressure for developers in retail spaces – from malls to superstores – to expand outside central business districts.

Karlo Pobre, research analyst at Colliers, said with the demand spurred by business process outsourcing in office spaces and the growth of masterplanned communities and residences, mall developments anchored by grocery stores follow these developments. 

New supply, however,  could jack up vacancy rates by nearly 10 percent by 2013.

Pobre said Colliers will start monitoring  superstores like Rustan’s Shopwise, SM’s Hypermarkets and Puregold which has mushroomed all over Metro Manila. 

At present there are 80 superstores in Metro Manila with display space of 420,000 sqm.

Colliers noted that  tight competition has   forced these mall chains to reinvent and upgrade from their traditional retail setups.

Colliers said international brands are fast given space in malls like the Japanese store Uni Qlo and Forever 21 for SM.  SM Malls are being refurbished to accommodate these brands.

With the addition of more supply, Colliers said vacancy rates as of the third quarter of the year on both super-regional and regional malls rose 3.17 percent or an occupancy rate from 98.6 percent in the second quarter to 96.8 percent.

Colliers said vacancy rates are expected to narrow as new mall spaces reopen.

“The 1.8 percent percentage point difference would correct in the near future,” said Julius Guevara, associate director for Advocacy & Research.

Guevara said some 270,000 sqm of leasable space would come on stream by 2013 which could push vacancy rates  to nearly 10 percent.

In the first nine months of the year, new retail space supply reached 60,000 sqm following the completion of Magnolia Town Center in Quezon City and the prelaunch of Glorietta 1 and 2 in Ayala Center.

Colliers noted that the recent demolition of Ever Grand Central totaling 21,700 sqm, led to the reduction of retail stock to settle at 6.7 million sqm of leasable space.

The development of Entertainment City in Pasay City would put in additional space for retail.