SM Offices is pouring more than P1 billion into Cebu as it doubles down on the regions, betting that provincial demand and mall-integrated workplaces will power a growth surge in 2026.
The office leasing arm of SM Prime Holdings will add over 60,000 square meters of gross floor area at the SM City Cebu North Wing Towers, with completion slated for the fourth quarter of 2026.
“We’re investing more than a billion pesos for the more than 60,000 square meter gross floor area,” said Alexis L. Ortiga, vice president and head of SM Offices, during a media briefing.
Ortiga described Cebu’s office market as “very healthy,” ranking second only to Bonifacio Global City in growth. He said the North Wing Towers project stands out for its location and seamless integration with retail and education components, including National University Cebu.
That integrated model—combining office, mall, residential and academic elements—gives tenants built-in convenience and accessibility that competitors may struggle to match. Ortiga also pointed to a continued “flight to quality,” as occupiers gravitate toward newer, well-located buildings.
Beyond Cebu, SM Offices sees sustained momentum in Bacolod, Davao City, Iloilo City and San Fernando. In Laguna, particularly Santa Rosa, Core Tower 3 is now more than 90 percent accounted for.
SM Offices closed last year with occupancy at about 85 percent, above the industry average. For 2026, growth will hinge on regional and mall-based assets, with expansion carefully timed to protect long-term value while capturing rising provincial demand.
