SM Prime bets big on Cebu with 60,000-sq m expansion
SM Prime Holdings Inc. is expanding its footprint in the Visayas to capture surging demand outside Metro Manila.
SM Offices, the group’s office leasing arm plans to add more than 60,000 square meters (sq m) of leasable space in Cebu City by the fourth quarter of 2026.
Located along A. Soriano Avenue in the North Reclamation Area, SM City Cebu Towers will cater to traditional corporations and business process outsourcing (BPO) firms that seek alternatives to the capital’s higher costs and congestion.
Alexis L. Ortiga, vice president and head SM Offices, said Cebu’s appeal continues to grow due to its infrastructure, skilled workforce and established business ecosystem.
Data from Leechiu Property Consultants showed Cebu accounted for 150,000 sq m, or 55 percent, of total provincial office takeup in 2025. This meant a 33-percent year-on-year increase.
“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 said.
The SM City Cebu Towers will rise within the redeveloped SM City Cebu North Wing complex. This area integrates retail components and a campus of National University (NU).
The site offers direct access to key transport links such as the South Road Properties corridor, Mactan-Cebu International Airport, nearby seaports and government offices.
SM Prime said its broader strategy focuses on mixed-use developments that combine offices, residences, retail, education, meetings and convention facilities, and leisure components.
This integrated approach is meant to improve efficiency for tenants while enhancing employee retention through accessible amenities.
The nearness of the office towers to the NU Cebu campus also enables companies to establish recruitment pipelines and training partnerships with students. This helps reduce hiring costs and lead times.
NU opened its Cebu campus last June 14 as its seventh provincial site, employing an entirely local workforce.
The planned Cebu expansion underscores SM Prime’s push to strengthen its regional office portfolio as businesses increasingly decentralize and look beyond Metro Manila for growth.
