SM Offices, the commercial property arm of SM Prime Holdings Inc., is ramping up its logistics footprint as it positions warehousing as a key growth driver within its Commercial Properties Group (CPG) portfolio.
Antonio Felix L. Ortiga, vice president of SM Offices, said the company is expanding warehouse capacity for third-party clients, underscoring rising demand from logistics players.
The firm recently secured a 40,000-square-meter site with SPX, the logistics partner of Shopee, marking a significant addition to its industrial portfolio.
“We see the logistics industry as one of our growth engines,” Ortiga said.
The CPG currently operates five warehouses across strategic locations in Taguig, Tondo, Silangan, Palanca, and Pasig, providing access to key urban markets. The company is also advancing plans for build-to-suit industrial developments in Parañaque, Laguna, Cavite, Tarlac, Iloilo, and Davao, sites selected for their proximity to major expressways, ports, and airports.
These facilities are designed to support a range of uses, including distribution, manufacturing support, and cold storage, as demand for integrated supply chain solutions continues to rise.
The push into logistics comes alongside steady growth in SM Prime’s office segment, which generated P2.5 billion in the first quarter, accounting for 7 percent of total revenues. This marked a 10% increase from P2.2 billion a year earlier, driven by improved occupancy rates.
SM Offices posted a similar 10 percent revenue increase during the period, with occupancy rising by around 7 to 8 percentage points compared with the previous quarter.
The office portfolio remains anchored by business process outsourcing (BPO) firms, which account for roughly 60 percent of tenants, while the remaining 40 percent comprises traditional companies and shared services providers—offering a diversified and stable tenant base.
As logistics demand accelerates alongside e-commerce growth, SM Offices is positioning its industrial and office assets to capture opportunities across the evolving commercial real estate landscape.
