SM Offices, the office leasing arm of SM Prime Holdings Inc. (SM Prime), is set to add 60,000 square meters of leasable space in Cebu City by the fourth quarter of the year to capture wider regional growth.

The Sy-led company said Thursday that SM City Cebu Towers, located at A. Soriano Avenue in the North Reclamation Area will target traditional corporations and business process outsourcing (BPO) firms seeking lower costs and less congested alternatives to Metro Manila.

Major economic hub

“Cebu is a major economic hub because of its strong infrastructure, exceptional talent pool, and complete business ecosystem,” SM Prime Holdings vice president and head of SM Offices, Alexis L. Ortiga said.

The expansion comes as Cebu accounted for 150,000 square meters of provincial office take-up in 2025 — 55 percent of the total and a 33 percent year-on-year growth, according to Leechiu Property Consultants.

SM City Cebu Towers

“SM City Cebu Towers is meant to support this growth by providing well-managed, high-quality, and well-connected office spaces that meet the evolving needs of businesses expanding in the region,” Ortiga added.

The tower is part of the redeveloped SM City Cebu North Wing, integrating retail facilities and a National University campus. Its location provides easy access to South Road Properties, Mactan-Cebu International Airport, the port area, and government centers.

Mixed-use development strategy

SM Prime’s mixed-use development strategy combines offices, residences, retail, education, MICE facilities, and leisure spaces nationwide.

 The integration seeks to boost tenant efficiency and employee retention while reducing hiring costs.