SM Offices, a business unit of Sy-led SM Prime Holdings Inc. (SM Prime), is investing ₱5 billion to build its latest office development, SixE-com Center, reaffirming its confidence in the Philippine real estate market.
In a statement, the firm said the pre-certified Leadership in Energy and Environmental Design (LEED) Gold development SixE-com Center will be located within the SM Mall of Asia (MOA) complex. It will offer over 60,000 square meters (sqm) of premium leasable space across two linear towers that are set for completion by 2026.
“We expect office vacancy rates to peak in 2025 as the market adjusts after the POGO [Philippine offshore gaming operators] exit. With business outlook improving and interest rates easing, we see demand picking up by 2026,” said SM Prime Vice President and Head of SM Offices Alexis Ortiga.
Real estate industry analysts have reported elevated vacancy rates, attributing them to the 2024 exit of POGOs, hybrid work arrangements, and corporate rightsizing.
However, SM Offices maintains strong occupancy, supported by demand from traditional companies, multinationals, and firms in business process outsourcing (BPO) and knowledge process outsourcing (KPO).
“POGOs are not part of our tenant mix. Our office towers are designed for clients that prioritize operational efficiency, employee well-being and sustainability,” Ortiga explained.
Designed by globally renowned architectural firm Arquitectonica, SixE-com Center is a mixed-use development that integrates lifestyle amenities, including SM’s signature E-Com Center “Prism Plaza” sky garden and a retail arcade.
SixE-com Center provides direct access to major transport links, including the upcoming Metro Rail Transit Line 3 (MRT-3) and Light Rail Transit (LRT) Cavite extension. It is also within walking distance of SM MOA and SM Development Corp. (SMDC) residential towers via elevated bridgeways.
As of 2024, SM Offices operates 22 office towers with a gross floor area (GFA) of nearly 1.6 million sqm, around 667,000 sqm of which are in MOA complex. Five of its towers are LEED-certified.