SM Offices, a division of SM Prime Holdings (SM Prime), is expanding its portfolio in key cities such as Cebu and Bacolod and is adding over 85,000 square meters (sq.m.) of leasable space this year for both traditional and business process outsourcing (BPO) tenants.
“Our strategy is focused on scaling our network of offices across key regional growth corridors—particularly in Central Luzon, CALABARZON and Central Visayas. Projects in Bacolod and Davao are also underway,” said Alexis Ortiga, head of SM Offices, in an email interview.
Collectively, these developments are expected to deliver over 47,000 sq.m. of new office space within the next 12 to 18 months.
But he did disclose the specific GLA figures or launch dates of the projects.
In a disclosure last week, SM Prime said SM Offices has allocated P6 billion this year for new developments, including the upcoming Six E-Com Center in the Mall of Asia Complex—a Grade A office tower tailored for tech-driven and BPO companies.
Talent pool
The company said companies especially business process outsourcing (BPOs) and traditional firms are expanding outside Metro Manila, targeting provincial locations to tap into broader talent pools and benefit from lower operational costs.
Ortiga said all of the company’s regional offices are connected to SM malls and residences, making them highly accessible and appealing to companies.
“This strategic advantage drives our commitment to regional expansion,” Ortiga said.
SM Prime said SM Offices captures the full advantage of the SM ecosystem—integrated, high-footfall environments that drive demand, enhance land values and create natural synergies across retail, transport, educational and residential components.
“By locating close to a mall and other integral elements of daily life, tenants can lower operating costs, enhance employer appeal, strengthen employee retention and gain immediate access to essentials. For employees SM Offices allows a seamless blend of work and lifestyle—commuting, dining, shopping and even living are all within easy reach,” Ortiga said.
SM Prime also said regional expansion unlocks emerging talent at lower cost, diversifies risk and positions businesses closer to high-growth, underserved markets. Early movers also gain from improving infrastructure and more efficient operations.
“SM Offices has made remarkable progress by recognizing what forward-thinking companies and their employees have long desired: a workplace that supports productivity and personal well-being. Our strategy thrives on embedding workspaces into vibrant ecosystems of convenience – co-locating offices within or adjacent to malls where everything from transit to retail and wellness is just a few steps away,” Ortiga said.
Flight to quality
SM Offices, he added, responded to the “flight-to-quality” trend by offering modern, sustainable, and well-located workspaces that cater to technology-driven industries and traditional firms.
As hybrid and in-person work models evolve post-pandemic, the importance of office spaces that feel more like an extension of the conveniences and comforts of home become paramount.
Ortiga said since the return to on-site work in 2022, many companies in the Philippines have placed greater importance on office spaces that prioritize employee accessibility and convenience
“It makes going to the office more efficient and practical,” he added.
SM Offices said the company has been experiencing strong demand for its mall-integrated office spaces as businesses increasingly favor mixed-use developments, expand into provincial areas, and seek locations that offer convenience and lifestyle amenities for employees.
As of January, occupancy across 15 of its mall-based offices nationwide had reached 95 percent .
Ortiga attributed this to the ongoing flight to quality or for premium, well-located office spaces.
This is an area where SM Offices holds a distinct advantage, he added.
Live, work, play, shop
For Joey Bondoc, head of research at Colliers, SM has somehow perfected the formula of a
a live, work, play, shop development and is maximizing it in its existing townships outside Metro Manila.
“It’s just a matter of expanding these estates and capture the demand. What works for them is the real integration of all features, malls, hotels and offices,” Bondoc said.
He cited SM Clark Complex as a very good example.
“The complex has readily available transportation such that business process outsourcing companies flock to SM Clark. Retail services are not a problem. If locator companies hold corporate events, SM Clark has accommodation facilities and meeting halls. SM Clark also captures the meetings, incentives, conferences or MICE market since it has a convention center, an exhibition hall and a hotel,” he added.
