Office for Lease in Hanoi

2023 promises to be a year with many positive developments in the office rental market in Hanoi. Join Maison Office to explore the bright spots, trends, and future supply in the market

Office rental market information in Hanoi

The latest news about office for lease in Hanoi

Overview

The office rental market in Hanoi is continuing to develop in 2023 and significant cGradees in the supply, with a large number of buildings planned for construction in the coming years.

As of the current moment, the Western area remains the main concentration of office supply, accounting for approximately 48% of the total office space available for rent in Hanoi.

With the economic recovery and increased foreign investment, there is a rising demand for office expansion and new leases, resulting in a decrease in the vacancy rate compared to previous years. The average occupancy rate for Grade A offices has reached 90%.

In the Grade B office segment, with a continuous influx of new supply introduced to the market since the end of last year, the occupancy rate stands at 80%. For Grade C office buildings, this rate is below 70%.

The demand for office rentals in Hanoi continues to rise due to the economic growth and developments in various industries and services. However, the supply of new office spaces has not met the demand, leading to a scarcity of offices in certain areas.

Office rental prices

The average rental price for Grade A offices has remained stable as the supply in this segment is growing, despite the overall Grade A occupancy rate remaining above 80%.Office rental prices in Hanoi are still lower compared to Ho Chi Minh City.  On average, the rental price in the capital city is around 33 USD/m2 for Grade A buildings.

Who is tenants?

They belong to industries such as finance, insurance, real estate, manufacturing, and IT technology.

• 70% of international tenants in Hanoi consist of companies from Japan, South Korea, the United States, and Singapore.
• 60% of South Korean businesses prioritize finding office spaces in Hanoi over Ho Chi Minh City.
• Samsung Corporation, the South Korean conglomerate, has the largest investment in the Vietnamese market, with a massive Research and Development center in the Westlake Tay Ho urban area, which is the largest in Southeast Asia.
• The current trend is towards flexible and creative working spaces. Companies, especially technology and startup firms, often seek modern, well-equipped office spaces with a sense of community.

The supply and demand situation for office spaces

Hanoi boasts multiple office development areas, including the historic central districts such as Ba Dinh, Hoan Kiem, and Dong Da, as well as newly developed areas like Cau Giay District, Thanh Xuan District, and Nam Tu Liem District.These regions offer convenient locations with easy access to amenities and are well-connected through a comprehensive transportation network.Based on geographical criteria, the office rental supply in Hanoi can be divided into three main areas:

1. Old Central Districts: Includes Hoan Kiem and Hai Ba Trung districts.
2. Dong Da and Ba Dinh Districts: The central area
3. Western Area: Cau Giay and Nam Tu Liem districts.

Other districts like Thanh Xuan, Hoang Mai, Tay Ho, Ha Dong, and Long Bien also have office buildings, but the quantity is not as significant, and they mostly consist of Grade C buildings.

Features of Old Central Area – Hoan Kiem, Hai Ba Trung Districts:

• Office buildings in the central districts of Hoan Kiem and Hai Ba Trung have higher rental rates and lower vacancy rates compared to other districts in Hanoi.
• In recent years, there has been a limited supply of new office spaces in this area due to a scarcity of available land for office development projects.
• Meanwhile, the demand for establishing headquarters in these central districts remains  high as it facilitates business transactions and enhances the brand image of companies.
• Hoan Kiem and Hai Ba Trung Districts are also the commercial, service, and tourism centers of Hanoi. Therefore, there is a high demand for renting properties for shops, hotels, and service establishments.
• Alongside the limited supply, this indirectly contributes to the rental prices as well, with a significant impact.

Features of office for rent in Dong Da and Ba Dinh Districts:

Offices located in Dong Da and Ba Dinh districts are in the most central locations, making them highly suitable for businesses needing offices in Hanoi where their partners are spread across various districts of the city.

Prominent streets with a concentration of office buildings include Lang Ha, Thai Ha, Kim Ma, Lieu Giai, and Doi Can.

In terms of construction, finishing, and amenities, office spaces in Dong Da and Ba Dinh are approximately 10% more affordable than those in Hoan Kiem and Hai Ba Trung districts.

Features of office for rent in The Western Hanoi area:

The Western Hanoi area (including Cau Giay and Nam Tu Liem districts) has experienced rapid development over the past 5 years, with most buildings being constructed after 2010.

This region boasts synchronized infrastructure development, wide roads, and minimal traffic congestion.

Office rental price in Hanoi 

Rental prices for office spaces in Hanoi generally range from approximately $15 USD/m2/month – $50 USD/m2/month, depending on the location of the building, the scale of design and finished facilities, the vacancy rate, the timing of availability, and the level of competition from nearby buildings.

Grade A office spaces in Hanoi have rental prices ranging from $30/sqm to $50/sqm per month:

• In the Hoan Kiem and Hai Ba Trung districts, Grade A office buildings like BIDV Tower, Thaiholdings Tower, Cornerstone, International Centre, and Sentinel Place have higher rental prices, typically ranging from $35/sqm to $50/sqm. 
• In Cau Giay and Dong Da districts, prices are more favorable, such as Keangnam and TNR at $25/sqm and Charmvit Tower at $20/sqm.

Grade B offices have a significant portion of available office spaces in Hanoi. With prices averaging between $20/sqm/month and $25/sqm/month, Grade B offices offer various options in terms of floor area, making them a popular choice for businesses.

Grade C offices in Hanoi come in a wide range of options and prices. Many Grade C offices are located within residential buildings. Depending on the location and building quality, Grade C office spaces can be found starting from $13/sqm/month.

The outstanding office rental buildings in Hanoi

Maison Office is a professional office for lease consulting company

Office rental consulting services assist clients in finding suitable office spaces at favorable prices due to our understanding of the market and relationships with office buildings.

These service providers play a role in providing market information, building information, assisting in transactions, and offering advisory opinions during price negotiations and contract discussions.

Regarding service fees, office rental consulting services charge fees to building owners and DO NOT CHARGE ANY FEES TO TENANTS.

Maison Office is a professional office rental service provider in Hanoi. We collaborate with specialized office buildings for rent in Hanoi. Maison Office will quickly assist clients in choosing an office floor that maximally meets their usage needs at the most suitable cost.

Feel free to contact us for expert office solutions tailored to your needs.