Quiet office for lease market

According to CBRE Vietnam survey:

In Ho Chi Minh city, in the first quarter 2018, due to the lack of new supply in Grade A and Grade B office, the total office premises supply source for this area is maintained at 382.763m2 for Grade A office and 813.362m2 for Grade B office. In 2018, it is estimated that there is only one new Grade B office outside the center area – Thaco Building in district 2 with the rental area of 6.000m2. Thaco Building is also the first Grade B office of Thu Thiem New Urban Area.

The rent costs for Grade A and Grade B office are respectively 39,71USD and 22,35USD/m2/month in this quarter. Because of the limited supply, the rent costs of Grade A and Grade B office are both increasing. As the rental cost of Deutschers Haus and Saigon Centre 2nd stage have increased by 50USD/m2/month, the rental costs of Grade A have increased by 3.5% compared with last quarter, and 7.4% compared with the corresponding period last year. The rent costs of Grade B office have increased by 5.8% compared with last quarter and 1.8% compared with the corresponding period last year, on account of the increase in rent costs of some projects to match market conditions.

According to CBRE, tenants have become more and more diverse. Most of tenants are from traditional industries such as Service (26%), Manufacturing (14%), Banking and Finance (9%). Besides, there are some tenants from other industries such as IT (14%), Co-working space (7%), Ecommerce (5%).


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