Malls urged to repurpose empty spaces

    1245

    Property consultant Colliers International suggests that mall owners repurpose their available space to address rising vacancies.

    Colliers said mall owners can convert vacant spaces into flexible workspace for offices adopting the hub and spoke model for their operations or to e-commerce business looking for warehouses.

    Colliers said malls “are near residential communities and this arrangement should significantly reduce employees’ commuting time.”

    This will benefit office space seekers that need non-core locations where tenants can avail rents about 20 to 30 percent cheaper than major business districts.

    “This is important especially for companies planning to implement a hub-and-spoke model wherein occupiers reduce the reliance of a single headquarters location for a more dispersed occupancy strategy. This also enables firms to reduce real estate costs by shrinking headquarter location and occupying smaller hubs across Metro Manila,” Colliers said.

    “Typically, these would be in lower cost locations and would allow companies to access talent in alternative locations. Colliers believes this arrangement improves work-life balance of employees and reduces living expenses,” it added.

    Tapping mall space as warehouse will “allow retailers to reach last-mile deliveries” particularly given the “growing demand for e-commerce.”