The entry of new commercial buildings like Grand Terra 36 Cat Linh have been likened to a magnet, drawing in premier businesses looking for properties that adhere to international standards in economically strong areas like Dong Da district.

Increased demand for high-quality office space

According to Savills APAC Office Spotlight released in March 2024, optimistic GDP indicators in most cities in the region are a signal of the return of commercial activities.

From there, the demand for employees increases, along with the need for more office space. Despite ongoing challenges, Vietnam had notable business registration activities in the initial months of the year, continuing the positive development momentum of 2023.

Data from the General Statistics Office (GSO) highlights more than 41,100 new business registrations in the first two months of 2024, increasing by 8.5 per cent on-year. This is a positive signal for improving the business climate, enhancing national competitiveness in 2024, and reflecting potentially increased demand for offices for rent soon.

Hoang Nguyet Minh, senior director, Commercial Leasing, Savills Hanoi

The demand is augmenting for well-located Grade A developments that meet sustainable standards and deliver competitive rates.

According to Savills Market Brief Q1/2024, Hanoi's Grade A had the largest take-up of 17,358 square metres in Q1/2024 due to relocations and expansions, while the total take-up of Grade B and C fell by 1,192sq.m.

Today, most office occupiers expect that their office buildings to provide a variety of amenities. Employees prefer workplaces in easily navigable areas, where they can take advantage of public transport.

As such, meeting ESG standards, construction quality and services are becoming key factors when considering office relocation or expansion. Many businesses select offices that align with their strategies and sustainability goals, while also catering to employee demands.

Businesses need to ensure that their offices cater to the health, wellness, and personal preferences of their employees, which supports the demand for high-quality offices that adhere to ESG standards and with good amenities.

Another factor that businesses consider when selecting an office is the rent. According to Savills Prime Benchmark published by Savills Asia-Pacific in January 2024, Hanoi has average rental prices compared to other markets in the region.

Prime office rents in Hanoi are approximately $41.7 per square meter per month (including management fees and VAT), which is significantly less than other regional markets like Hong Kong ($194/sq.m/month), Seoul ($101.3/sq.m/ month), Shanghai ($90/sq.m/month), Osaka ($73.6/sq.m/month), and Ho Chi Minh City ($63.2/sq.m/month).

According to Hoang Nguyet Minh, senior director, Commercial Leasing, Savills Hanoi, the Grade A office segment in the capital city is maintaining competitive rents compared to Ho Chi Minh City, or even other APAC markets.

With new Grade A supply expected to increase soon, office rents in Hanoi may stay steady or dip slightly. This new Grade A project satisfies the strict standards of ESG, diverse amenities, convenient transport, and affordable rental prices.

Minh noted that the current market is delivering prime opportunities for tenants looking to rent new properties or expand because it offers high-quality and budget-friendly projects.

Notably, in the first half of 2024, Hanoi will welcome new commercial developments in the new economic zone, including Grand Terra 36 Cat Linh, one of the initial Grade A office and retail complexes to incorporate cutting-edge technologies for building operation management, security control, and construction.

High-end Grade A commercial building

Grand Terra 36 Cat Linh aligns to international standards with advanced technical specifications, including six office levels, three retail levels, and a four-level basement for parking.

The complex is spacious and meets the needs of both tenants and visitors. The project has a Net Leasable Area (NLA) of 14,847sq.m with large floorplates of approximately 1,800sq.m with a 150mm raised floor and finished ceiling. The building has nine elevators, ensuring peak seamless experiences and limiting waiting times.

Grand Terra 36 Cat Linh brings more than 14,847sq.m net leasable area of ​​new office and retail supply in Hanoi

With its prime location and well-developed transportation infrastructure, Grand Terra 36 Cat Linh provides convenient access to other districts, including Hoan Kiem, Cau Giay, and Tay Ho.

The prime retail and office complex is only a three-minute walk from Cat Linh Station.

The 2A Cat Linh - Ha Dong urban railway line means it only takes 15 minutes to travel from Ha Dong to this prestigious property.

This helps occupiers to avoid traffic and minimises parking challenges for inner-city employees. The construction site of the underground line from Cat Linh to Le Duan has been completed, and Cat Linh road is expected to reopen in 2024, returning a two-way route to the Cat Linh area, and placing the project in a strategic location.

The property is also home to the five-star Grand Mercure Hanoi hotel, which means tenants, especially multinational companies, benefit from discounted room rates, F&B services, and conference rooms.

Soon, the area will have more diverse amenities with nearby developments like Tien Bo Plaza, Horizon, and the 11A Cat Linh office building.

Grand Terra 36 Cat Linh is one of the few buildings in Vietnam developed to meet LEED Gold criteria, fostering energy efficiency and sustainability through optimal technical performance. The building is dedicated to achieving water savings of up to 40 per cent and energy savings of up to 20 per cent on average during its operational phase.

The completed floorplate has an average area of ​​about 1,800sq.m

“The future office supply of the inner-city area in Hanoi will shift to Dong Da district, instead of Ba Dinh, with not only Grand Terra 36 Cat Linh but also a series of new projects under construction and will be introduced shortly," said Minh. "This new supply is expected to make Dong Da a new commercial and economic destination for Hanoi. Therefore, Grand Terra 36 Cat Linh is an opportunity for businesses to take advantage of the time when they can receive many incentives because, in the next few years, the rental prices will increase. Grand Terra 36 Cat Linh is likely to attract businesses in medical equipment and technology, manufacturing, energy, finance, and foreign investment.”

For information about the project, please visit the website www.grandterra.vn or contact hotline: 0948 000 468