Two Key Points Affecting Grade A Office Real Estate

OFFICE MARKET SITUATION FOR THE FIRST HEAR OF 2022

The capacity of Hanoi office real estate market recently increased by 2 percentage points quarter-on-quarter, thanks in part to the improvement from Grade A. By the end of 2022, six projects are expected to enter the market. in which there is a Grade A project, the office building of Techcombank Tower - 6 Quang Trung . This is the next international quality Grade A office project to join the school after Capital Place.

TWO KEY FACTORS AFFECTING GRADE A OFFICE REAL ESTATE 2022

Ms. Minh analyzed, below are the two main factors that bring opportunities to the office market and affect the tenant's decision to rent space.

First, the green office element. In Hanoi, there are currently two projects receiving green certificates, including TechnoPark office building and Capital Place. This trend will continue to develop in the future with projects such as Techcombank Tower – 6 Quang Trung, Gelex 10 Tran Nguyen Han, 36 Cat Linh and Tien Do Plaza are built according to LEED Gold standards, Lancaster Luminaire and Taisei Office Building Hanoi with LEED Green… These projects will contribute to provide nearly 90,000 m2 more. green office floor for the market.

Offices in buildings with green certificates will have more and more competitive advantages, as tenants are gradually looking for quality offices in prime locations and there are significant changes. in the desk space. Replacing traditional workspaces will be new workspaces that contribute to environmental protection as well as increase work productivity, attract and retain talents.

Second, a remarkable point of the Grade A office market after the Covid-19 pandemic is the tendency to appear more of the combined working model (hybrid working) and agile working model. It can be seen that the big transactions in the market are in the distribution, IT & Media, production, finance, real estate, consulting, healthcare. Most of the companies in these groups are tending to adopt a hybrid and flexible working model. These two models are completely different from the co-working model. With co-working, different companies (tenants) share the same premises and use common facilities such as reception, security, and cleaning services. Although the co-working model is mentioned a lot, there are still certain limitations, only suitable for groups of startups, project-based companies, or companies looking for a short-term office. .

Senior Director of Commercial Leasing Division Savills Hanoi clarified: “Premier than traditional working models, the combined/flexible office model helps companies be flexible In the design of the office, instead of fixed seats, change into shared working areas, teamwork, promoting more interaction between employees while still creating a separate space for online meetings or meetings. focus meetings, increase employee performance, and most importantly, build and engage employees according to the culture and core values of each business. It is predicted that the hybrid working model will be adopted and deployed much faster than the shared office”.

For business owners, the combined office model will help save rental space and working time, especially carefully considering office design, methods of building corporate culture and keeping talent feet. For example, when Techcombank Tower – 6 Quang Trung is the only office building to enter the market in the central area of Hanoi (CBD) in 2022, creating great competition pressure on office buildings in the Hoan Kiem area, which were built in 20 years. years ago according to the old design and technical standards. Taking advantage of the international quality of the building such as columnless floors, sound absorption floors, air quality, international operation management units, etc. are expected to be big plus points to attract tenants.

According to a global survey by Savills in 2021 in different countries, the degree of adaptation to this model is also quite different. This combined working model is said to be a new but inevitable trend in the near future after a long time of Covid, office workers are used to working from home, and are hesitant to return to the office. room by fixed office hours.

How should tenants and the market react, adopt, and transition to new working models; How the market grows, develops, and prospects when more and more high-quality office buildings appear will be clarified by Savills experts in the In-depth Update on the Hanoi Office market. held on June 16, 2022 in Hanoi.