Office occupancy in Hanoi currently stands at about 86 per cent, unchanged from the previous quarter but up three percentage points year on year, according to Savills Vietnam.
Demand is being driven largely by businesses seeking to relocate to higher-quality workplaces while optimising costs.
About 495,000 sq m of new office space is expected to enter the market by 2028 across 18 projects. Most of the new supply will be concentrated in western Hanoi and inner-city districts, giving tenants more options but also increasing competition among buildings.
Savills experts say that as more high-quality projects come to market, a building’s advantages will depend on more than its location and construction standards. Operating cost control, efficient energy and water use, and indoor environmental quality are also becoming important factors in tenant experience and asset performance.
In western Hanoi, Tay Ho Tay is emerging as a new office and commercial hub, supported by the presence of government agencies, residential developments and investment in infrastructure. The area is also attracting Grade A office projects.
One example is ABI Tower, a 16-storey building with two basement levels and a total floor area of 12,700 sq m. The project is targeting LEED Gold green building certification.
Savills Vietnam recently announced that Catgo had appointed the company to manage ABI Tower. Its responsibilities will include overseeing building operations, monitoring energy and water consumption, maintaining indoor air quality, and supporting waste and environmental management.
Le Chi Dung, deputy general director of Catgo, said the company was focusing on sustainability not only in the building’s design and construction but also in its long-term operation and management. Appointing a property manager at an early stage would help establish an operational framework aligned with the project’s long-term goals, he said.
This approach is also being considered by other developers when selecting building operators.
Matthew Powell, director of Savills Hanoi, said the Grade A office market was expanding geographically, giving businesses a wider range of options. As the supply of high-quality space grows, building management will play an increasingly important role in maintaining asset performance and meeting tenant expectations.