Sep 17, 2026 · by BalayHub Admin · 6 min read

Renting Space in a Mall in the Philippines: Costs and Terms

Renting space in a mall in the Philippines: base plus percentage rent, CUSA, deposits of two to six months, fit out, and street rents from ₱458 per sqm.

Renting Space in a Mall in the Philippines: Costs and Terms

For a food brand, a clinic or a small retailer, renting space in a mall in the Philippines is the fastest way to buy foot traffic, and the easiest way to sign a lease you do not fully understand. Mall rent is not a single number. It is a base rent, a share of your sales, a service charge, a marketing fund, a deposit measured in months and a construction bond, and the contract is usually shown only after your concept has been approved. This guide explains how mall leases are structured, what to ask before you apply, how the market looks in 2026, and how the cost compares with a street level space using real asking rents from our listings.

How mall rent is built

Malls price space in three ways, and the larger ones combine them. A fixed rent is a set amount per square meter per month. A percentage rent is a share of your gross sales, which is why in line stores are required to run a point of sale system the mall can read. The common formula for in line tenants is a hybrid: a fixed minimum plus a percentage of sales, or whichever of the two is higher. Kiosks and carts are more often charged a fixed rent only.

On top of the rent come the charges that first time tenants forget to budget. The common usage service area charge, CUSA, is quoted per square meter and pays for air conditioning, security, cleaning and the upkeep of common areas. Utilities are submetered, and some malls bill a minimum even in a slow month. In line tenants usually contribute to a marketing or advertising fund. Pest control, grease trap servicing for food tenants and point of sale maintenance appear as separate lines. Ask for all of them in writing, per square meter, before you compare two malls on the base rent.

The rate itself depends on the city, the mall, the floor, the distance from the anchors and the escalators, and whether the space is for food or for retail. There is no uniform contract even among malls of the same operator, which is why a quotation for one branch tells you little about the next.

The cash you need before opening day

The deposit is the first shock. Security deposits and bonds commonly run from two to six months of gross rent, on top of advance rent, and they stay with the landlord for the whole term. The fit out is the second. You will build the store at your own cost, to a design the mall approves, during a fit out period that may or may not be rent free, and the mall will ask for a construction bond and for contractor's all risks insurance before your workers are allowed in. Add the business permits for the branch, which the local government issues only once you have the lease.

We suggest having the fit out cost plus at least six months of total occupancy cost in hand before signing. Total occupancy cost, rent plus CUSA plus the other charges, is also the figure to measure against projected sales, month by month, before you commit to a three year term.

What the mall will ask from you

The application is a pitch. Expect to submit a letter of intent naming the branch and the size you want, a company profile with your DTI or SEC registration, a product list with prices, photos or perspectives of the store design, and your existing branches and sales if you have them. The leasing team decides on tenant mix first and price second: a mall with six milk tea stalls will decline a seventh at any rent. New concepts are often offered a kiosk, a cart or a short term pop up first, which is a fair test for both sides.

Only after approval will you see the lease. Read the clauses on the term and renewal, the annual escalation, the percentage rent and how sales are audited, the operating hours you must keep, relocation rights the mall reserves, exclusivity if any, and what happens to your deposit and your fit out if you close early. A lawyer's fee for this review is small against a three year commitment.

The market in 2026

The timing is reasonable for tenants. Colliers reported that vacancy in Metro Manila malls fell to 10.8% in the first quarter of 2026, from 11.4% in the third quarter of 2025, the lowest level since early 2020, with food and beverage, clothing and footwear brands taking most of the space, according to the Manila Bulletin's coverage in May. The same research expects landlords to stay cautious on rent increases this year, and new supply of about 111,000 square meters a year through 2028 against 332,000 a year before the pandemic. About a tenth of mall space is still empty, and operators would rather fill it with a sound tenant than hold out for a higher rate. The large operators are also opening and renovating malls in Cebu, Davao, Iloilo and Bacolod, where a new brand meets less competition for the same square meter.

The street level alternative, with real numbers

A mall is not the only location for a business. In our listing sample, street level commercial space for rent asks a median of about ₱786 (about $13 / €11) per square meter a month in Quezon City, across 16 listings with a typical size of 80 square meters and a median rent of ₱54,750 (about $872 / €761). Makati asks about ₱1,715 (about $27 / €24) per square meter, Cebu City ₱630 (about $10 / €8.8), Davao ₱530 (about $8.4 / €7.4) and Mandaue ₱458 (about $7.3 / €6.4). At the small end, food stalls of 4 to 9 square meters near schools and in neighborhood food hubs in Quezon City and Marikina list at ₱5,500 to ₱8,000 (about $88 to $127 / €76 to €111) a month, and a food cart space in Taguig at ₱10,000 (about $159 / €139).

Those rents come without CUSA and without a percentage of sales. They also come without the mall's foot traffic, parking, air conditioning and security, so the comparison is between paying for traffic and building your own. Browse the current commercial spaces for rent and sale, including property listings in Quezon City, and read our commercial property guide for buyers and tenants for lease terms outside the malls.

Choosing between them

Take the mall when your product depends on impulse and volume, when your brand is unknown and needs the landlord's traffic, and when your margins can carry a percentage rent. Take the street when your customers come to you on purpose, as they do for clinics, salons, repair shops and delivery kitchens, or when you are still proving the concept. Many operators do both: a kitchen on a side street at street rents and a kiosk in the mall as the shop window. If the business needs storage behind it, our guide to warehouses and industrial property covers that side, and owners weighing whether to buy instead of rent can start with the property valuation tool. For a lease outside a mall, our notes on what a Philippine lease agreement should include apply to commercial space as well.

This article is general information, not legal or business advice. Mall lease terms vary by operator and branch and are disclosed during the application; street level rents are asking figures from BalayHub's listing price sample as of September 2026.

Dollar and euro figures are approximate conversions at ₱62.8 per US dollar and ₱72.0 per euro (ECB reference rates, 2026-09-18).

Frequently asked questions

How much does it cost to rent a space in a mall in the Philippines?

There is no published rate card. Rent depends on the city, the mall, the floor and the position, and is usually a fixed minimum per square meter plus a percentage of gross sales, or whichever is higher. On top come the CUSA service charge per square meter, submetered utilities, a marketing fund and other fees. Ask for every charge in writing and compare total occupancy cost, not base rent.

What is CUSA in a mall lease?

CUSA stands for common usage service area charge. It is billed per square meter each month and pays for the mall's air conditioning, security, cleaning, maintenance and the upkeep of common areas. It is separate from the rent and from your own utilities, and because it applies to the whole leased area it can be a large part of the monthly bill for small, low margin tenants.

How much deposit does a mall require?

Security deposits and bonds commonly run from two to six months of gross rent, plus advance rent, and are held for the whole lease term. Malls also require a construction bond and contractor's all risks insurance before the fit out starts. A tenant should have the fit out budget and at least six months of total occupancy cost available before signing.

Is it cheaper to rent a commercial space outside a mall?

Usually, per square meter. In our listing sample, street level commercial space asks a median of about ₱786 (about $13 / €11) per square meter a month in Quezon City, ₱1,715 (about $27 / €24) in Makati, ₱630 (about $10 / €8.8) in Cebu City, ₱530 (about $8.4 / €7.4) in Davao and ₱458 (about $7.3 / €6.4) in Mandaue, with no CUSA and no percentage of sales. Small food stalls of 4 to 9 square meters list at ₱5,500 to ₱8,000 (about $88 to $127 / €76 to €111) a month. You give up the mall's foot traffic.

What documents do I need to apply for mall space?

A letter of intent naming the branch and the size you want, a company profile with DTI or SEC registration, your product list and price points, perspectives or photos of the proposed store design, and details of existing branches and sales if any. Leasing teams decide on tenant mix first, so a clear concept matters as much as the rent you can pay. The lease is shown after approval.

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