SM Prime Holdings Inc. reported robust demand for its mall-based office spaces, driven by a growing preference among businesses for mixed-use developments that offer convenience, accessibility, and quality infrastructure.
As of January 2025, occupancy at 22 of SM Prime’s mall-based offices across the country reached 95 percent, according to the company. This strong uptake is being propelled by the “flight-to-quality” trend among corporate tenants seeking premium, strategically located office spaces.
“The flight-to-quality trend is fueling demand for high-quality, well-located corporate spaces, giving SM Offices a competitive edge,” said Alexis Ortiga, head of SM Offices. “All our regional sites are connected to SM malls and residences, making them highly accessible and attractive to businesses.”
SM Offices, the office leasing arm of SM Prime, operates both standalone office towers adjacent to SM malls and integrated office spaces within mall complexes. This setup gives tenants immediate access to transport hubs, shopping, dining, and leisure amenities—key factors driving leasing decisions as more companies prioritize employee convenience in the post-pandemic workplace environment.
Ortiga noted that since the return of in-person work in 2022, companies have increasingly sought office locations that offer practical benefits for employees. “It makes going to the office more efficient and practical,” he said.
With growing interest from business process outsourcing (BPO) and traditional firms to establish operations beyond Metro Manila, SM Prime is ramping up its regional expansion strategy. The company is currently adding over 85,000 square meters of new leasable office space in Cebu and Bacolod this year to meet rising demand.
To support continued growth, SM Offices has allocated ₱6 billion for its 2025 development pipeline, which includes new projects such as the Six E-Com Center in the Mall of Asia Complex. The upcoming development is tailored to meet the needs of tech-driven and outsourcing companies, further reinforcing SM Prime’s position in the competitive office leasing sector.
