SM Offices, a unit of SM Prime Holdings, is expanding its office portfolio with the P5-billion development of SixE-com Center in the SM Mall of Asia (MOA) Complex — placing confidence in the country’s growing real estate market.

In a report to the bourse on Thursday, the company said the planned pre-certified LEED Gold development will offer over 60,000 square meters of premium leasable space across two linear towers.

Designed by global architectural firm Arquitectonica, SixE-com Center will integrate lifestyle amenities, including SM’s signature E-Com Center “Prism Plaza” sky garden and a retail arcade.

The development will have direct access to major transport links such as the upcoming MRT-3 and LRT Cavite Extension and will be connected to SM Mall of Asia as well as SMDC residential towers via elevated bridgeways.

“We expect office vacancy rates to peak in 2025 as the market adjusts after the POGO (Philippine Offshore Gaming Operators) exit. With business outlook improving and interest rates easing, we see demand picking up by 2026,” Alexis Ortiga, head of SM Offices and vice president of SM Prime Holdings, said.

Vacancy rates elevated

Real estate analysts have cited elevated vacancy rates due to the exit of POGOs in 2024, hybrid work arrangements and corporate right-sizing.

Despite this, SM Offices maintains strong occupancy, supported by traditional companies, multinationals and firms in business process outsourcing and knowledge process outsourcing.

“POGOs are not part of our tenant mix. Our office towers are designed for clients that prioritize operational efficiency, employee well-being and sustainability,” Ortiga added.

As of 2024, SM Offices operates 22 office towers with a gross floor area of nearly 1.6 million square meters, with about 667,000 square meters located in the MOA Complex. Five of its towers are LEED-certified.