Hanoi's evolving office landscape

The Hanoi office market is experiencing significant shifts. New Grade A supply is increasingly concentrated in the Dong Da district, creating potential downward pressure on rental prices in the near term.

This trend offers expansion opportunities for businesses, particularly foreign-invested enterprises operating in fields like energy, manufacturing, and finance.

"Businesses have a window of opportunity to secure favorable rental rates on new, high-quality office space," states Hoang Nguyet Minh, Senior Director, Commercial Leasing at Savills Hanoi. "This may be particularly appealing to companies seeking to upgrade their premises or expand their footprint in the capital."

Tenant Mix Changes

While interest from IT companies has declined due to global financial headwinds, Hanoi's Grade A office market continues to see healthy demand.

Energy and manufacturing companies are driving an increasing portion of leasing activity, mirroring Vietnam's success in attracting greater foreign direct investment (FDI) in these sectors.

Focus on Sustainability

A growing number of new office developments, including the Grand Terra 36 Cat Linh building, are incorporating ESG principles with features like LEED Gold certification. This trend aligns with rising tenant expectations for environmentally responsible workplaces.

"Quality office space with robust ESG credentials remains in demand," notes Ms. Minh. "For companies prioritizing sustainability, the current market offers several attractive options."