Decisive factors to rent of Grade A offices in Hanoi
Demands from financial, real estate, information communications technology, distribution, and manufacturing tenants have increased since 2021.
Green office buildings and the transition from traditional to hybrid or agile work is an increasing interest of local and foreign tenants in Hanoi.
Gelex 10 Tran Nguyen Han. Photo: Savills
Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Hanoi, pointed out the trend, adding that for business owners, the hybrid/agile working model can help businesses optimize office space and working time. Companies also need to pay close attention to the office design when they build their corporate culture and retain talents.
Among the projects, Techcombank Tower - 6 Quang Trung will be the only new Grade A office building in the central business district (CBD) this year. The building is likely to perform well, given that it will compete with other office buildings in Hoan Kiem District, many of which are more than 20 years old.
Tenants will feel comfortable as the column-free floorplates promote collaboration, the air purification system creates a healthy environment, and the soundproofed floor means the offices are quiet.
“When implementing hybrid or agile models, tenants need to consider their employees’ preferences and how they practically align with a specific working model. This is essential to a smooth transition away from traditional work. How businesses and landlords adapt and respond to market changes will become a measurement of success,” Minh underlined.
The latest report noted the rent of Grade A offices in Hanoi will depend on the future supply. According to Savills Q1/2022 report, between 2023 and 2025, the market will see high-quality projects, including Gelex 10 Tran Nguyen Han, 36 Cat Linh, Tien Bo Plaza, Lancaster Luminaire and Taisei Office Building Hanoi.
These properties will cater to green demands and premium tenants, thanks to reputable developers, high development quality, and green certificates like LEED Gold.
“Business should plan carefully when implementing changes. They should consider the quality of the project and the reputation of the developer. They should also consult with professional advisors. Thorough planning will reduce unnecessary costs during the leasing process, control risks, and bring greater satisfaction in the long term,” Minh added.
Savills 2022 Impacts report shows that workers still enjoy diversifying different types of workspaces. However, many companies want their employees back at the office full-time.
According to the 2021 Savills Office FiT survey, about 25% of workers said they concentrate more and 63% said collaboration is better at the office. Businesses need to give employees flexibility while providing a healthy and dynamic workplace.