SM Offices, a business unit of SM Prime Holdings Inc., said it is pushing through with the construction of a P5-billion office project at Mall of Asia Complex in Pasay City.
SMPH said SixE-com Center, a pre-certified LEED Gold development, will offer more than 60,000 square meters of premium leasable space across two linear towers.
The project was originally set for completion by 2026.
“We expect office vacancy rates to peak in 2025 as the market adjusts after the POGO exit. With business outlook improving and interest rates easing, we see demand picking up by 2026,” said Alexis Ortiga, head of SM Offices and vice president of SMPH
Industry-wide, the office sector is affected by hybrid work arrangements, coupled with the exit of Philippine offshore gaming operators (POGOs), and corporate right-sizing. As a result, office vacancy reached nearly 20 percent in 2024.
SMPH said despite these developments, occupancy across its office portfolio remained strong, 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 said.
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 MRT-3 and LRT Cavite Extension. It is also within walking distance of the SM Mall of Asia and SMDC residential towers via elevated bridgeways.
SM Offices was operating 22 office towers with a gross floor area of nearly 1.6 million square meters, including 667,000 square meters in the MOA Complex as of end-2024. Five of its towers are LEED-certified.