With Ho Chi Minh City’s Tan Phu district on the rise and the emergence of a new trend of working style, “Hub &Spoke,” how will the current market of office building in HCMC be changing?
Hub & Spoke: An up and coming trend
It’s no secret that the pandemic has changed all sorts of aspects of everyone’s lives, perhaps no aspect more than our working lives. Hybrid working is no longer a ‘nice-to-have’ for many people across the world, now it’s a must-have.
Employers have had to adapt and so have those in the commercial real estate sector. The situation in Vietnam is no different, with co-working office supply growing 6% year-on-year in 2020 and 3% in 2021, according to Savills Vietnam.
While these statistics indicate growth is slowing, the changes the pandemic has brought won’t be going away anytime soon. Co-working is here to stay and Savills predicts demand for this type of office space to grow this year, based on Vietnam’s positive economic outlook for 2022. Employees now need more than just a desk, they need an office that adds value, as otherwise, why travel to your desk?
From this, there has been a new trend called Hub & Spoke which combines both the satellite office model with a core office model. Together with the growing hybrid workplace trend, we see after the lockdowns, office spaces are starting to offer their employees flexibility never-before-seen. By doing so, employers are prioritizing efficiency and productivity in a modern sense.
“The post-lockdown market is resilient with high demand and low supply. Hybrid offices are becoming increasingly popular and now are a viable and cost-effective solution. Tenants from the IT sector are the most active, seeking offices across all grades. Despite a supply shortage, rents are unlikely to further increase as small office absorption is slowing down,” says Ms. Tu Thi Hong An, Savills Vietnam Commercial Leasing Director, HCMC.
With these new trends, we can expect a strong push for companies to build satellite offices around the city to cater to their workforce. Offices will be designed to be more spacious and offer modern amenities without the expensive CBD prices.
However, as with many large cities around the world, Ho Chi Minh City’s central business district is packed. Space for anything comes at a premium in this bustling metropolis, and it’s the same in the office market. No wonder in Q4 of 2021 84% of new office supply was non-CBD.
Ms. Tu Thi Hong An continues, “OfficeHaus with their effective office space design is a developer to watch in Q4/2022 with a shortage of office space in the CBD.”
Ho Chi Minh City’s Tan Phu is a district on the rise
This is where the unique advantages of Tan Phu District come in. While it is close enough to the city center, companies can be assured they’ll be getting a comfortable and spacious workplace when they opt for an office there, rather than the few cramped options available in the CBD.
With a land area of 16 km² and a population in excess of 485,000, Tan Phu is in the heart of the bustling metropolis of Ho Chi Minh City and a short drive from the key industrial areas of Binh Duong Province, so no wonder it’s an up-and-coming location for the city’s office market. Tan Phu has room for spacious offices with clean and beautiful modern facilities that the modern business must have to keep employees happy and productive.
The OfficeHaus project is one of several exciting new developments set to change the face of the district’s commercial office market, and shake up the sector across the city.
OfficeHaus is uniquely positioned to make hay while the sun shines in this changing market, as a trailblazer in the hybrid working sector. The building provides the largest floorplate in Saigon for lease (2,500 sqm) with modern state-of-the-art facilities that accelerate productivity and lead to happier workplaces.
Mr. Oliver Brazier, Director of OfficeHaus, says, “Tan Phu is a new and exciting hub for the world of offices in Ho Chi Minh because it is not overly crowded with office buildings. But if you look at the statistics about population, infrastructure, and connectivity with other office spaces, it shows the potential of this area. With lower costs and a bustling population, Tan Phu is perfect for a young and dynamic workforce in diverse industries such as IT, engineering, e-commerce, and creative fields such as design.”
OfficeHaus understands the needs of modern workers. Besides being designed for efficiency and productivity, OfficeHaus uses smart technology for contactless gates and lifts, and hands-free office, pantry, and restroom access to keep tenants and guests safe in this post-Covid era.
The flexible layouts that can be created on Saigon’s largest floorplates guarantee the building’s adaptability to future generations’ needs. OfficeHaus combines that with high but well-judged degrees of technology and sustainability to create safe, contactless access to a workspace that benefits from very good air and climate quality (LEED Gold certification) — a very interesting place for Gen Z to develop their careers and employers to nurture their staff’s talents.
To summarize, OfficeHaus’ building construction is underway, with the basement currently being built and the superstructure to be completed by July.
“We were able to foresee the development of Tan Phu district, therefore OfficeHaus is a pioneer by moving away from the overcrowded District 1 to the green and beautiful Tan Phu. Tenants and partners can expect OfficeHaus to be fully open by the fourth quarter of this year. The ground floor and some office spaces have already been leased out and OfficeHaus' team is currently working with multinational corporations and tenants with a need for large office space in industries such as finance, accounting, IT, engineering, and logistics toward the goal of 8-12 diverse tenants in the building”, says Mr. Brazier.