MANILA -- SM Prime Holdings unit SM Offices is spending P5 billion to build a new office building in Metro Manila.

In a statement, SM Prime said the new SixE-com Center will have 60,000 square meters of premium leasable office space across two linear towers. The project is supposed to be completed by 2026.

The building, which will be located in the SM Mall of Asia  complex, will have direct links to transport hubs, including the upcoming MRT-3 and LRT Cavite Extension. 

Alexis Ortiga, head of SM Offices, said the firm expects office vacancy rates to peak in 2025 after President Ferdinand Marcos Jr. banned Philippine Offshore Gaming Operations (POGOs) from the country.

But he stressed that SM Offices maintains a high occupancy rate, because of demand from traditional companies, multinationals, and business process outsourcing (BPO) and knowledge process outsourcing (KPO) firms.

“POGOs are not part of our tenant mix,” Ortiga noted. “Our office towers are designed for clients that prioritize operational efficiency, employee well-being and sustainability.” 

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He also noted that demand for office spaces may pick up again in 2026 as interest rates ease and business outlook improves.

SM Offices currently operates 22 office towers with a gross floor area of nearly 1.6 million square meters. 

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