Three New Trends in the Office Rental Market
Three New Trends in the Office Rental Market
The real estate market is witnessing three significant trends that will impact the office rental segment in the near future.
Focus on High-Quality Office Development
The year 2022 observed an optimistic surge in demand for offices driven by the need for office expansion, upgrades, or from new companies entering the Vietnamese market.
Ms. Hoang Nguyet Minh, Director of the Commercial Leasing Department at Savills Hanoi, analyzed that a notable change in the commercial real estate market in Hanoi is the evident investment in the quality of office buildings. This market optimism is driven by the current trend of businesses having higher demands for workspaces with complete amenities, flexibility, and services meeting international standards.
Shift to Hybrid Working Models
The second trend in the office market is tenants shifting towards hybrid working models. This model is a perfect combination of remote work and office work, focusing on work efficiency and requiring optimized and smart office designs.
In 2022, the market noted that some FDI companies opened new offices, applying the hybrid working model. Ms. Minh believes that when comparing traditional office models with hybrid working models, the investment in a new office model is not more costly than investing in a traditional office. The difference lies in the office layout, increased shared space usage, and flexible work amenities, instead of vacant office positions.
Preference for Green Offices
The third trend in the office market is an increasing preference for green offices. 2022 was an optimistic year for the growth of Grade A office segment, with demand for new offices coming from embassies, which traditionally set up headquarters in private villas rather than commercial buildings.
Grade A offices are usually located in central positions, featuring modern designs, and professional-standard amenities, services, and machinery systems. Some Grade A offices also ensure green areas and minimize environmental emissions. This requirement is sometimes mandatory for tenants who are multinational corporations, helping them maintain commitments to ESG (Environmental, Social, Governance Policy) missions in the coming years.
For office tenants, there is a growing demand for renting spaces in buildings that are invested in and built according to international green standards like LEED Gold, coupled with high-end services. With tangible benefits for both physical and mental health from green spaces, in Vietnam, over the past few years, many companies have focused on office design to create more efficient working spaces for employees.
