VIETNAM CHAMBER OF COMMERCE AND INDUSTRY
Liên Đoàn Thương Mại Và Công Nghiệp Việt Nam
Tue, Jan 19, 2021, 14:18:00
Many businesses have struggled due to the COVID-19 pandemic, but co-working spaces have bucked the trend and is expected to expand in the coming time, fuelled by companies seeking flexible leasing contracts, according to Savills experts.
Director of Savills Hanoi Matthew Powell said co-working spaces that provide flexibility for various kinds of businesses will develop, explaining it is sparked by the outbreak as well as demand for communication and exchange within the firms.
Meanwhile, structural changes in the retail sales sector have added a certain number of spaces for the office market, he said, flexible office models could branch out in tandem with the retail sales market since they revolve around shared amenities such as public transport, parking lots, restaurants, and entertainment.
Shared office space is normally operated under month-to-month leasing contract. However, the market saw strong surge in demand for this kind of office, and most of which came from mid-term contracts.
A survey from Savills showed that as of July 2020, demand for co-working spaces doubled that recorded in April, while 41 percent of office operators relished their exciting prospects for the office market in the next 12 months.
Savills experts expected growth of the office market will be promoted by foreign firms, insurance and e-commerce businesses who recorded strong development amidst the pandemic.
Matthew Power said demand for office is on the rise, and it will go up further in 2021, as the pandemic is under good control together with upbeat signs in local macro-economy and demography.
