SM Offices to spend ₱1B for 60,000 sq.m. Cebu expansion

Sy-led SM Prime Holdings Inc. is looking to invest P1 billion to add over 60,000 square meters to its office space in Cebu by the fourth quarter of the year, banking on growth of the regional office market outside Metro Manila.

According to SM Prime vice president and head of SM Offices Alexis Ortiga, the Cebu office market remains healthy, with the province accounting for 150,000 square meters or 55% of provincial office takeup in 2025 based on data from Leechiu Property Consultants.

“The Cebu office market was only second to BGC in terms of growth, so we are confident about SM Cebu North Wing Towers. We believe that it offers great value for its location and its integration with the SM City Cebu Mall and NU (National University) Cebu,” he said in a virtual briefing.

Located at A. Soriano Avenue in the North Reclamation Area, SM City Cebu Towers targets traditional corporations and business process outsourcing (BPO) firms seeking alternatives to Metro Manila with higher costs and congested roads.

It sits within the redeveloped SM City Cebu North Wing complex, which also houses the NU campus that opened in June 2025, and provides access to South Road Properties and the Mactan-Cebu International Airport (MCIA).

“Our focus right now is really on occupancy, stability, and tenant quality over portfolio expansion, so the 60,000 square meters is already a significant addition to the market,” Ortiga said.

“We’re mindful not to get ahead of demand so that we don’t put undue pressure on pricing and absorption. Over the medium term, we believe that Cebu remains a very strong growth market for us, but any expansion will be measured in time to demand so that we sustain the growth and protect our long-term value,” he added.

SM Offices’ portfolio includes the SM Cyber Makati, SM Cyber West, Aura Office Tower, SM Clark BPO Techno Hub, SM Taytay BPO Tower, SM Sta. Rosa Core Tower, NU MOA Tower, Downtown Tower, SM Strata, Fairview Towers, North Towers, and Mega Tower.

SM Prime has set a P100-billion spending program for 2026, as it seeks to sustain the growth of its retail and commercial segments moving forward. —AOL, GMA Integrated News