SM sees strong uptake for offices based in malls

MANILA, Philippines — SM Prime Holdings, the integrated property developer of the SM Group, is expanding its office portfolio to support the strong demand for its mall-based offices as more businesses seek premium spaces.

SM Prime, through unit SM Offices, is ramping up its expansion in Cebu and Bacolod, adding over 85,000 square meters of leasable space this year to meet rising demand from traditional and business process outsourcing (BPO) tenants.

SM Offices operates both standalone office towers near SM malls and mall-based office spaces.

SM Prime said the strategic locations of these office towers and integration within the SM ecosystem give tenants easy access to public transportation, retail, dining and entertainment options.

“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,” SM Offices head Alexis Ortiga said.

Ortiga said that 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,” he said.

As of January, occupancy at 15 of SM Prime’s mall-based offices located across the Philippines stood at 95 percent.

SM Prime said that the strong uptake for its mall-based offices are driven by businesses moving toward mixed-use developments and seeking locations that provide employees with access to recreational amenities.

It said that another trend boosting SM Offices’ growth is the increasing interest for provincial office facilities, as traditional and BPO companies expand operations outside Metro Manila to access a wider talent pool and cost-efficient locations.

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

SM Offices has earmarked P6 billion this year to develop new office towers and workspaces, including Six E-Com Center, a Grade A office tower in the Mall of Asia Complex designed for technology-driven industries and BPO firms.