SM Megamall is the crown jewel of the Sy family’s mall empire, a 474,000-square-meter complex that earns the strongest sales density of any SM mall and serves as the primary revenue engine of SM Prime. So why would SM Supermalls tear down a big chunk of it, including the wing that once housed a National Book Store and a landmark food court? President Steven Tan’s blunt answer: parking.
The best-selling building is gone
SM confirmed at its mid-year business review on Sept. 1 that it has demolished Building A of SM Megamall, the original section of the Mandaluyong complex that has anchored the Ortigas business district for decades. “Building A is gone. The area where National Book Store and the Food Court used to be? Gone,” Tan said. “Who in their right mind demolishes a building that brings in so much revenue? But we had to bite the bullet.”
The demolition is the centerpiece of a P7-billion redevelopment meant to future-proof the property. It has already pushed out longtime tenants: gift-and-paper brand Papemelroti closed its original Megamall branch on June 1 citing the mall redevelopment, though its Shangri-La Plaza store remains open.
Parking was the real problem
Megamall’s chronic headache was never foot traffic. It was the gridlock. For years, vehicles queuing to enter the complex backed up onto EDSA and surrounding avenues while drivers circled endlessly for a space, and Tan called parking Megamall’s biggest pain point.
“The biggest friction point, the biggest pain point, for Megamall is parking. We admit that,” he said. “That’s why we dug deeper. We created another four or five underground levels, adding thousands of parking spots. Once it’s finished, you won’t have a hard time finding a spot or entering the mall.”
He frames the lost rental income as a calculated bet on customer loyalty: “It will all return,” Tan said. “The business will come back.”
What rises in its place
Designed by UK firm Benoy, the studio behind Singapore’s Jewel Changi, the rebuilt Megamall follows a “Crystal Islands” concept built around natural light and open flow, with phased completion between 2027 and 2029. Renderings SM released show an open-concept atrium rising where the old corridors stood.
| Redevelopment at a glance | Detail |
|---|---|
| Investment | P7 billion |
| Design | Benoy “Crystal Islands” concept |
| Added floor area | About 20,000 square meters of gross leasable area |
| New parking | Four to five basement levels, thousands of slots |
| Other upgrades | Relocated cinemas, new Megatrade Hall, redesigned food court |
| Completion | Phased, 2027 to 2029 |
SM is also weaving in sustainability measures: an ETFE roof that lets in daylight, a rainwater harvesting system, and energy-efficient lighting and escalators.
Beyond the building: the Gen Z pivot
The rebuild is only part of a bigger strategy shift. SM Supermalls rode a strong first half of 2026, and the operator of roughly 90 malls is now moving from broad family segments to niche “tribes,” betting that Gen Z shoppers want experiences, not just shelves.
That has meant turning SM malls into destinations in their own right: more than 100 pickleball courts, a 25,000-seat arena at SM City Seaside Cebu, and a one-hectare indoor garden planned for the SM Nuvali opening in Laguna on Nov. 27. SM has also formed an internal “Gen Z Council” of younger staff to tell executives where the market is heading.
For SM, tearing down its best-selling building is the uncomfortable first step toward a mall built for the next generation of Filipino shoppers, one that fixes the parking before it worries about the footfall.
