A HIGHLY-MOBILE workforce, largely driven by millenials, is pressing the rising need for co-working spaces inside malls and townships.
As such, property management firm Colliers International Philippines encouraged mall players to cater to this demand by opening co-working spaces inside their facilities.
“Due to the worsening traffic in Cebu and the rising disposable incomes of highly-mobile millennials and young entrepreneurs, we suggest that developers carve out co-working space in malls located within township communities,” said Colliers in its second quarter 2017 Cebu Retail Report.
“Operators should offer incentives for co-working office space occupants such as discounts in the mall’s stores, gyms, and restaurants,” it added.
As of the second quarter, retail stock in Cebu stood at 1.01 million square meters. By 2019, this is expected to reach 1.2 million square meters, five times higher that the current stock, said Colliers.
This will be supported by the proposed $340-million Lapu-Lapu Leisure Mactan Integrated Resort and Casino by Udenna Corp. that will feature a high-end retail complex, although specific details of the project have yet to be released. There are also upcoming retail projects from Ayala Land, Aboitiz Land, and Filinvest.
Cebu, the leading retail hub outside Metro Manila, gains most of its retail activities from the BPO workforce, overseas Filipino remittances, local and foreign tourists, and the sustained generation of employment opportunities by traditional companies.
Food and beverage (F&B) and fast fashion are the malls’ key driving forces and Colliers encouraged mall operators to exhibit an interesting mix of F&B and fashion brands to sustain visitor traffic.
With 200,000 square meters of additional retail space in the next 12 to 36 months in Metro Cebu, overall vacancy is also expected to rise to nine to 10 percent, from the current 6.1 percent.
“The significant amount of additional supply should be offset by sustained demand from retailers and stable regional economy, which fuels Cebuanos’ propensity to consume,” Colliers said.