Commercial leasing recovers as retailers reopen

CEBU, Philippines —  Commercial leasing in Cebu, particularly in retail is starting to pick up, as operators are starting to re-open stores and restaurant outlets.

Commercial leasing specialist Eppie Acusar said that while online shopping and other forms of eCommerce affected the brick and mortar retail concept, some retailers and restaurateurs alike realized the need for physical presence, thus improving the business of commercial leasing in Cebu.

Acusar, who founded the iBuild Management Services Inc., said while re-opening of physical stores and restaurants are starting, the sizes of spaces however reduced to consider the change of consumer behavior in the new normal.

She said physical stores or setting up brick and mortar stores are still vital in achieving sales in retail these days.

Those determined business owners who understood the new dynamics in retail business, are investing in both physical and online presence, fueling the positive outlook for commercial leasing in Cebu.

She said the elements of touch and feel are still vital in the retail business, not to include shopping as a therapeutic activity for others, particularly women.

Although some have to close shop due to unprofitability from a two-year pandemic-torn economy, others are coming back with smaller store sizes, to save rental fees.

“Everyone is resizing now, even restaurants because it is difficult to maintain spaces whose floors are no longer revenue-generating,” Acusar explained, advising other entrepreneurs to pick smaller cuts of commercial space or get a kiosk in other to stay afloat.

While staying online is also good, providing physical presence adds proportion to the store brand and other profitable benefits.

Likewise, restaurants which survived from the two years on-and-off operators are adopting different approach now. She said some opted to relocate to stand alone locations with wide area for alfresco or outdoor dining.

She noted that consumers purchasing power have not changed in general. In fact, consumers are now willing to pay higher as long as they are assured of health safety, and quality experience.

She reiterated that while eCommerce growth accelerated in the last two years, commercial leasing still continues to thrive by welcoming new set up and requirements from tenants.

Commercial leasing business growth is also fueled by the active stance of essential goods and services businesses to open new branches, requiring bigger spaces, such as beauty salons, pharmacies, home improvement brands, among others.