SM Offices investing P1B in Cebu expansion

SM OFFICES, the commercial property arm of SM Prime Holdings, Inc., plans to add more than 60,000 square meters (sq.m.) of new leasable space worth about P1 billion at SM City Cebu Towers by the fourth quarter of 2026.

“Cebu is a major economic hub because of its strong infrastructure, exceptional talent pool, and complete business ecosystem,” Vice-President and Head of SM Offices Alexis L. Ortiga said in a statement on Thursday.

“SM City Cebu Towers is meant to support this growth by providing well-managed high-quality and well-connected office spaces that meet the evolving needs of businesses expanding in the region,” he added.

According to Leechiu Property Consultants, Cebu recorded office space take-up of 150,000 sq.m., or 55% of provincial demand, in 2025, representing a 33% increase from the previous year.

SM City Cebu Towers is located on A. Soriano Avenue in the North Reclamation Area. The development attracts traditional corporations and business process outsourcing (BPO) firms seeking in-city alternatives to higher costs and traffic congestion in Metro Manila.

The project forms part of the redeveloped SM City Cebu North Wing complex, which integrates retail spaces and a National University (NU) campus.

The site provides access to the South Road Properties, Mactan-Cebu International Airport, the port area, and government centers. Its proximity to NU allows office tenants to build recruitment and training linkages with students, potentially reducing hiring costs and lead times.

NU Cebu opened on June 14 last year as the university’s seventh provincial campus, staffed entirely by local hires to support education and employment in the region.

“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,” Mr. Ortiga said.

SM Prime develops mixed-use projects nationwide, integrating offices, residences, retail, education, meetings, incentives, conferences and exhibitions (MICE), and leisure components to support tenant efficiency and employee retention through shared amenities.

At the local bourse on Thursday, shares in SM Prime fell by 1.41% to close at P21 apiece. — Alexandria Grace C. Magno