SM Prime Holdings’ office leasing arm plans to add more than 60,000 square meters of new leasable space in Cebu City by the fourth quarter of 2026, betting on demand from companies expanding outside Metro Manila as Cebu cements its position as the country’s most active regional office market.
The additional supply will come from SM City Cebu Towers, located along A. Soriano Avenue in the North Reclamation Area, SM Offices said.
The project is targeting both traditional corporate occupiers and business process outsourcing (BPO) firms that want in-city locations with strong transport links and access to talent, while avoiding Metro Manila’s higher operating costs and heavier congestion.
“Cebu is a major economic hub because of its strong infrastructure, exceptional talent pool, and complete business ecosystem,” said Alexis L. Ortiga, vice president and head of SM Offices.
Market data underscore the developer’s push. Cebu accounted for 150,000 square meters, or 55% of provincial office take-up in 2025, representing 33% year-on-year growth, according to Leechiu Property Consultants.
SM Offices said the new towers are intended to support that growth by providing “well-managed high-quality and well-connected” workspaces as requirements evolve for occupiers that prioritize operational continuity, employee experience and proximity to amenities.
The development sits within the redeveloped SM City Cebu North Wing complex, which integrates retail facilities and a National University (NU) campus.
SM said the site offers access to the South Road Properties corridor and Mactan-Cebu International Airport, while also being near the port area and government centers—factors that can influence location choices for firms with logistics needs or frequent client-facing activity.
SM Offices also highlighted the adjacency to NU as a potential hiring and training advantage for office locators, allowing firms to build recruitment pipelines and partnerships with graduating students.
NU Cebu officially opened on June 14, 2025, and is the university’s seventh campus outside Metro Manila. The campus operates with 100% local hires, NU said, positioning it as part of a broader push to expand education and employment opportunities in the province without requiring students to relocate.
SM Prime, meanwhile, continues to pursue mixed-use developments that combine offices with residential, retail, education, MICE facilities and leisure spaces. The strategy is designed to create efficiencies for tenants and support employee retention by offering integrated amenities in a single district-style environment, the company said.
Cebu Business News
