Information technology–business process management (IT-BPM) firms are increasingly following workers who relocated back to their home provinces after the pandemic, driving office demand beyond Metro Manila, according to SM Offices.

The IT-BPM sector is one of the Philippines' largest employment generators and a cornerstone of the services economy, making geographic shifts in office demand a significant indicator of where jobs and investment are flowing.

The office leasing arm of SM Prime Holdings, Inc. said that access to regional talent, transportation infrastructure, and mixed-use developments has become a key factor in attracting IT-BPM companies and global capability centers (GCCs) to areas outside the capital.

Speaking at a media briefing, SM Offices head Antonio Felix L. Ortiga explained that the post-pandemic movement of workers to the provinces has pushed companies to establish operations closer to where their employees now live.

“I think it’s no secret that the IT-BPM industry followed, that, and so now, there’s a gentrification of wealth throughout the country,” Mr. Ortiga said.

He noted that this shift has enabled workers to secure skilled employment while maintaining a sustainable cost of living in their home provinces, rather than relocating to Metro Manila. Property developers, he added, play a role in supporting the dispersal of jobs and investment by building offices and supporting infrastructure in regional business hubs.

Mr. Ortiga pointed to SM Offices’ 10-tower Clark Tech Hub in Pampanga — now fully occupied — as evidence of strong demand outside the capital region. Clark, a former US military base redeveloped into a freeport zone, has emerged as one of the country's most established alternative business districts, offering incentives and infrastructure that have attracted both BPO firms and GCCs over the years. He attributed the company’s performance in part to the broader “SM ecosystem,” which integrates office space with retail malls, hotels, and convention centers.

“Any project that we get into, we do it. We calculate properly, so that in times of downturns, we’re ready,” Mr. Ortiga said, describing the approach as a way to manage risk while creating opportunities for tenants within mixed-use environments.

Transportation connectivity forms another pillar of the company’s strategy. Mr. Ortiga identified the Metro Rail Transit Line 7 and the North-South Commuter Railway (NSCR) as infrastructure projects expected to improve access to SM Prime developments along their routes. He called the NSCR a potential “game changer” that could significantly cut travel times between Clark, Pampanga, and Metro Manila.

In April, SM inaugurated an elevated concourse connecting SM Megamall to the Ortigas station of the Epifanio de los Santos Avenue Busway.

To help tenants meet recruitment needs, SM Offices has partnered with National University (NU). Its Bridges to Success program links tenant companies directly with NU students and graduates.

“All these employers need that fresh blood to fill their seats,” Mr. Ortiga said, noting that a reliable talent pipeline has become a key differentiator for SM Offices.

Mr. Ortiga also reported that SM Offices has sustained strong performance in the Bay Area, despite a broader market slowdown in the area. Data from property consultancy Colliers showed the Bay Area office vacancy rate at 40.6%, the second-highest among Metro Manila office submarkets. Colliers attributed the elevated vacancy partly to the departure of Philippine offshore gaming operators, which have been scaling down amid tighter government regulations and a presidential directive to phase out POGO operations by the end of 2024.