Demand rises for affordable office space in HCMC as companies cut costs

VNO Development and Investment Corporation, a company that transforms houses into office space for rent, said for instance that the number of businesses renting its offices for three to six months increased by 20 – 25 percent from last quarter.

Its offices with rentals of VND368,000 ($16) per square meter are attracting small local businesses, especially in the construction, land survey, market research, and online selling sectors, which are recovering after a year of suffering due to the pandemic.

The landlord of a grade B office building in Da Kao Ward in District 1 said the number of firms renting offices was up 15 percent compared to the end of 2020.

The majority of tenants are companies moving from grade A buildings that cost $40-50 to cut costs.

The CEO of VNO, Nguyen Hong Hai, said companies’ need to continue doing business but cut costs have increased the demand for office space with low rents.

According to a note by real estate firm Colliers International Vietnam, since the first and second outbreaks of Covid-19 last year, a number of companies have relocated from grade A to grade B buildings to reduce costs. This trend is expected to continue in 2021, it said.