SM OFFICES, the business property arm of SM Prime Holdings, Inc., plans so as to add greater than 60,000 square meters (sq.m.) of recent leasable space value about P1 billion at SM City Cebu Towers by the fourth quarter of 2026.
“Cebu is a significant economic hub due to its strong infrastructure, exceptional talent pool, and complete business ecosystem,” Vice-President and Head of SM Offices Alexis L. Ortiga said in a press release on Thursday.
“SM City Cebu Towers is supposed to support this growth by providing well-managed high-quality and well-connected office spaces that meet the evolving needs of companies expanding within the region,” he added.
Based on Leechiu Property Consultants, Cebu recorded office space take-up of 150,000 sq.m., or 55% of provincial demand, in 2025, representing a 33% increase from the previous 12 months.
SM City Cebu Towers is situated on A. Soriano Avenue within the North Reclamation Area. The event attracts traditional corporations and business process outsourcing (BPO) firms searching for in-city alternatives to higher costs and traffic congestion in Metro Manila.
The project forms a part of the redeveloped SM City Cebu North Wing complex, which integrates retail spaces and a National University (NU) campus.
The positioning provides access to the South Road Properties, Mactan-Cebu International Airport, the port area, and government centers. Its proximity to NU allows office tenants to construct recruitment and training linkages with students, potentially reducing hiring costs and lead times.
NU Cebu opened on June 14 last 12 months because the university’s seventh provincial campus, staffed entirely by local hires to support education and employment within the region.
“Over the medium term, we imagine that Cebu stays a really strong growth marketplace for us, but any expansion can be measured in time to demand in order that we sustain the expansion and protect our long-term value,” Mr. Ortiga said.
SM Prime develops mixed-use projects nationwide, integrating offices, residences, retail, education, meetings, incentives, conferences and exhibitions (MICE), and leisure components to support tenant efficiency and worker retention through shared amenities.
On the local bourse on Thursday, shares in SM Prime fell by 1.41% to shut at P21 apiece. — Alexandria Grace C. Magno