SM Offices to expand leasable space in Cebu and Bacolod

SM Prime Holdings, Inc. said its office unit SM Offices will accelerate its office space expansion in the Visayas this year to meet the growing demand.

SM Offices plans to add over 85,000 square meters of leasable space this year, driven by increasing demand from both traditional and business process outsourcing (BPO) tenants, according to a regulatory filing on Wednesday.

The office developer noted a rising interest in provincial office facilities as companies expand operations outside Metro Manila to access a broader talent pool and more cost-effective locations.

As of January, occupancy for its mall-based offices stood at 95% across 15 locations nationwide.

“The flight-to-quality trend is fueling demand for high-quality, well-located corporate spaces, giving SM Offices a competitive edge,” said Alexis L. Ortiga, Head of SM Offices.

“All our regional sites are connected to SM malls and residences, making them highly accessible and attractive to businesses. This strategic advantage drives our commitment to regional expansion,” he added.

SM Offices operates both standalone office towers near SM malls and mall-based office spaces, providing easy access to public transportation, retail, dining, and entertainment options.

“Since in-person work resumed in 2022, more companies in the Philippines have prioritized office spaces that offer employee convenience and accessibility. It makes going to the office more efficient and practical,” Mr. Ortiga said.

For 2025, SM Offices has allocated P6 billion to develop new office towers and workspaces, including the Six E-Com Center office tower in the Mall of Asia complex, designed to cater to technology-driven industries and BPO firms.

SM Prime shares declined by 0.22% or five centavos to P22.60 each on Wednesday. — Revin Mikhael D. Ochave