Like most, you probably don’t prioritize following the office market daily. However, as we move through 2024, the office landscape in Ho Chi Minh City and Hanoi continues to evolve in ways that may be positive for you.
Understanding these changes can help you make better business decisions, whether you’re considering an office move or staying informed. Let’s break down what’s happening and what it means for you.
HCMC saw several new office buildings open in early 2024, particularly in the high-end category known as Grade A. These are top-tier offices in prime locations with state-of-the-art facilities and premium services. While they’re typically the most expensive, they offer the best amenities and prestige.
According to a new report from Cushman & Wakefield, this influx of new Grade A offices means more choices for businesses, especially those looking for top-quality space. This continues to be the case for upcoming developments:
And the market is seeing changes across all office types, also including Grade B (good quality, well-located, but not quite as luxurious as Grade A) and Grade C (functional spaces, often in older buildings or less central locations, and the most affordable option).
This is leading to two different trends, with on the one hand some large international companies using this opportunity to move to better Grade A buildings. At the same time, other businesses, feeling the economic pinch, are looking for more affordable options in Grade B or even Grade C offices.
The percentage of occupied office space (“occupancy rates”) has dropped slightly, especially for Grade A offices. This is mainly because of all the new buildings that are opening up. For you as a business leader, this could mean more room for negotiation on prices or terms when looking for a high-end office.
For you, this means:
1. More options: With more office space available, you have a better chance of finding a place that perfectly fits your needs, whether you’re looking for a premium Grade A space or a more budget-friendly Grade B or C option.
2. Potential for better deals: Some older buildings, particularly in the Grade B category, might offer more competitive rates to keep up with the new competition from Grade A spaces.
3. Upgrade opportunities: Now might be a good time if you’ve been considering moving to a nicer office. Some companies use the current market to upgrade from Grade B to Grade A space without significantly increasing costs.
These movements are also making it easier to secure great deals on private offices and coworking spaces. If you have difficulty choosing, check our guides to the best serviced offices, WeWork or Dreamplex, and Toong or Dreamplex.)
Hanoi’s office market tells a different story. Unlike HCMC, no new major office buildings opened in the first half of 2024, which means the market has been more stable across all grades.
Larger companies are taking advantage of the current market to upgrade their offices, often moving from Grade B to Grade A spaces. At the same time, smaller and medium-sized businesses mostly choose to renew their current leases rather than move, whether they’re in Grade B or C offices.
Occupancy rates in Hanoi have slightly improved, but they’re still lower than last year. This subtle shift suggests that while the market is stable, there’s still room for negotiation, especially in Grade A buildings.
If you’re ready to jump on any opportunities to secure a better officer above, it helps to learn from others who successfully negotiated a great office deal. At Dreamplex, we’ve had the privilege of guiding hundreds of companies through their office relocation journey.
These experiences inspired us to create a comprehensive whitepaper titled “How to Find & Manage a Private Office in Vietnam.” This resource is packed with insights from businesses who’ve been through the process and learned valuable lessons along the way.
You can download the paper here, which includes tips on finding the best value office like:
1. Know Your Priorities: Before looking, be clear about what’s most important for your business. Is it the prestige of a Grade A office, the balance of quality and cost in a Grade B space, or the affordability of a Grade C location? What kind of team do you have or are you planning to hire – as Gen Z has different wants and needs than other generations.
2. Think About Growth: Choose a space to accommodate your team’s potential growth. The hassle of moving can be significant, so plan. Grade A and some Grade B offices often offer more flexibility for expansion. We’ve seen companies outgrow their space within months of moving, leading to costly and disruptive relocations.
3. Look at Total Cost: Don’t just focus on the rent. Consider all costs, including utilities, internet, and services. Some options, like managed offices, include these in one predictable fee, making a Grade A or B office more affordable than it first appears. Hidden costs have caught many companies off guard, significantly impacting their budgets.
By leveraging these insights from companies that have already navigated the office search process, you can avoid common pitfalls and make a more informed decision. Remember, finding the right office balances immediate needs with long-term goals – it’ll be one of your most significant investments besides talent.
Please remember that your office is more than just a place to work—it’s a tool for attracting top talent, boosting your employer brand, impressing clients, and building your company culture. Choose wisely, and your office can be a key business success driver.
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With professional, flexible workspaces, top-notch hospitality services, and a collaborative community for mutual growth, Dreamplex helps businesses work productively while optimizing operational costs.
Join the community with tech experts and startup founders from TIKI, Zuhlke Vietnam, GFT Group, Vietcetera, at Dreamplex’s flexible office spaces in Ho Chi Minh City and Hanoi.
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