SM Investing P5 billion in new Mall of Asia Complex office project

SM Offices, a division of SM Prime Holdings Inc. (SMPH), is proceeding with the development of the P5-billion SixE-com Center, a premium office project located within the Mall of Asia (MOA) Complex in Pasay City.

The pre-certified LEED Gold development will feature over 60,000 square meters of leasable space across two linear towers. Originally slated for completion in 2026, the project aims to capitalize on anticipated market recovery.

"We anticipate office vacancy rates to peak in 2025 due to market adjustments following the departure of Philippine Offshore Gaming Operators (POGOs). However, with an improving business outlook and potential easing of interest rates, we expect demand to rebound by 2026," said Alexis Ortiga, head of SM Offices and vice president of SMPH.

The broader office sector has experienced challenges, including the rise of hybrid work arrangements, the POGO exit, and corporate downsizing, resulting in a nearly 20% vacancy rate in 2024.

Despite these market conditions, SMPH reports strong occupancy rates across its office portfolio, driven by demand from traditional corporations, multinational companies, and firms in the Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) sectors.

"Our tenant mix does not include POGOs. Our office towers are designed to cater to clients prioritizing operational efficiency, employee well-being, and sustainability," Ortiga said.

Designed by Arquitectonica, the SixE-com Center will be a mixed-use development incorporating lifestyle amenities, including SM's signature E-Com Center "Prism Plaza" sky garden and a retail arcade.

The project will offer direct access to major transportation links, including the future MRT-3 and LRT Cavite Extension, and is connected via elevated bridgeways to SM Mall of Asia and SMDC residential towers.

 SM Offices operates 22 office towers, totaling nearly 1.6 million square meters of gross floor area, with 667,000 square meters located within the MOA Complex. Five of its towers hold LEED certifications.