Hà Nội grade A office market recovers thanks partly to green construction

November 13, 2023 - 17:31
HA NỘI — The Hà Nội office leasing market is recovering from a slump with grade-A offices leading the way thanks to their ideal locations and compliance with ESG standards.
The PVI Tower belonging to PVI Holdings in Cầu Giấy District, Hà Nội.

In a note, property consultancy Savills Vietnam said in the third quarter stock was up 1 per cent quarter-on-quarter and 2 per cent year-on-year to 2.16 million square metres of net leasing area (NLA).

The market take-up in this period reached 44,500sq.m.

Grade A was the most popular segment, attracting many new lessees, especially companies looking for good locations.

Grade A rent increased by 2 per cent quarter on quarter to VNĐ24,000 per square metre per month.

With foreign companies scouting premium projects, grade A offices in Hà Nội have the potential to attract significant tenants, especially given that the grade will have a 77 per cent share of future supply. 

Since 2019 the supply of grade A offices in the capital is up 4 per cent compared to 5 per cent for grade B and 1 per cent for grade C. 

PVI Tower is situated in the middle of the Technology and Finance Centre in Hà Nội.

The west, including Cầu Giấy, North Từ Liêm and South Từ Liêm districts, has seen the biggest supply in the market of over 875,800sq.m for a 41 per cent market share.

According to Savills Vietnam, the leasing market was active in the first nine months of 2023, with manufacturing tenants accounting for the most deals and the largest leased area, with ICT, FIRE and education tenants following closely behind. 

Relocation dominated leasing activity; tenants relocating liked the secondary area with its new and high-quality projects, budget-friendly rents and proximity to the CBD, Savills said.

In addition to a premium location, “sustainability is a must” for tenants when deciding to rent an office.

Savills said green real estate in Việt Nam is a growing segment, especially in the commercial space. 

Savy corporates realise that ESG reporting is a responsibility and would be made mandatory in the short term  and more than 85 per cent of Việt Nam's fastest growing companies have ESG commitments, it said.

This trend has driven a surge in demand for green-certified offices, it added.

Realising the trend, many developers in Hà Nội have been implementing programmes to attract customers.

Of them, PVI Holdings, developer of the PVI Tower in Yên Hoà, Cầu Giấy District, has launched numerous programmes to offer their tenants the best services.

The PVI Tower was designed by France’s Archi Company with multiple functions, harmony with the environment and energy-saving features.

A PVI representative said: “In a difficult economic context, businesses tend to optimise workspace and reduce space costs.

“PVI has continuously evaluated the market and the difficulties customers are facing to offer the most suitable support packages for businesses in terms of internal amenities and even rentals.”

The PVI Tower, one of the few office buildings in Cầu Giấy District measuring over 61,000sq.m, is a pioneer in offering green and smart offices in the city.

The building contains offices for lease, a restaurant, an entertainment space, conference and gym areas, and relaxation areas for executives.

It is capable of hosting conferences with 300 people.

The PVI Tower has been chosen by many famous global brands like Samsung, PVI, Seabank, Taipei economic and cultural office in Việt Nam and Mobifone.

It is an ideal working environment and the best office space for various kinds of businesses, multinational companies and giant economic groups who are looking to lease space in Hà Nội.