Mall-based offices boost SM occupancy

SM Offices, the commercial leasing arm of SM Prime Holdings Inc., reported a 95 percent occupancy rate across 15 of its mall-based offices nationwide as of January this year, driven by growing demand for mixed-use developments and employee-centric workspaces.

“The flight-to-quality trend is fueling demand for high-quality, well-located corporate spaces, giving SM Offices a competitive edge,” SM Offices Head Alexis Ortiga said in a stock exchange filing on Wednesday.

SM Offices operates both standalone towers near SM malls and office spaces integrated within mall complexes. The company said these locations provide tenants with direct access to transportation, retail, dining, and entertainment options through the broader SM Ecosystem.

“All our regional sites are connected to SM malls and residences, making them highly accessible and attractive to businesses. This strategic advantage drives our commitment to regional expansion,” Ortiga said.

Ortiga added that since in-person work resumed in 2022, more companies have been prioritizing office spaces that offer employee convenience and accessibility. “It makes going to the office more efficient and practical,” he said.

Provincial expansion is also contributing to the segment’s growth, as traditional and business process outsourcing (BPO) firms look beyond Metro Manila to tap into broader labor markets and more cost-effective locations.

To address this trend, SM Offices is expanding in key regional hubs like Cebu and Bacolod, where it plans to add over 85,000 square meters of leasable office space this year.

This year alone, the company has allocated P6 billion to develop new office towers and workspaces, including the Six E-Com Center, a Grade A office tower located in the Mall of Asia Complex to cater to technology-focused firms and BPO companies.