CBRE RESEARCH
EXCLUSIVE TENANT EVENT
|
Q1 2021
AGILE WORKPLACE HANOI
CONTENT
01
HANOI OFFICE MARKET UPDATE
02
AGILE WORKPLACE
03
Q&A & SITE TOURS
EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
EXCLUSIVE TENANT EVENT
OFFICE MARKET UPDATE
|
Q1 2021
01
4
HANOI OFFICE MARKET SUMMARY HANOI OFFICE: MARKET SNAPSHOT Q1 2021
GRADE B
GRADE A TOTAL SUPPLY
528,000
NLA (sqm)
ASKING RENT*
US$26.9
997,000 sqm NLA
21 projects
72 projects
US$13.9
2.7% y-o-y
0.4% q-o-q
US$/sqm/month
VACANCY RATE
sqm NLA
22.4%
(%)
2.4% y-o-y
Stable q-o-q
15.3 ppts y-o-y
13.3%
0.7 ppts q-o-q
NO
NEW
COMPLETIONS
4.0 ppts y-o-y 2.1 ppts q-o-q
Source: CBRE Vietnam Research, Q1 2021. Note: Asking rent is quoted on NLA, excluding VAT & Service charges.
EXCLUSIVE TENANT EVENT| Q1 2021
4
© 2021 CBRE, INC.
OFFICE SUPPLY BY YEAR
40%
2,000,000
40%
1,600,000
30%
1,600,000
30%
400,000
-10%
0%
400,000
-10%
0
-20%
2017
Q1 2021
2020
2019
2018
-20%
2017
-
800,000
2021 Q1
0%
2020
800,000
10%
2019
10%
20%
1,200,000
2018
20%
1,200,000
NLA (sqm)
2,000,000
Growth Rate (%)
HCMC Office, Total Supply by Grade
Growth Rate
NLA (sqm)
Hanoi Office, Total Supply by Grade
Supply - Grade A
Supply - Grade B
Supply - Grade A
Supply - Grade B
Growth rate - Grade A
Growth rate - Grade B
Growth rate - Grade A
Growth rate - Grade B
Source: CBRE Vietnam Research, Q1 2021. Note: Asking rent is quoted on NLA, excluding VAT & Service charges.
EXCLUSIVE TENANT EVENT| Q1 2021
5
© 2021 CBRE, INC.
OFFICE MARKET PERFORMANCE BY YEAR HCMC Office, Market Performance by Grade $50
$25
25%
$40
$20
20%
$15
15%
$10
10%
2018
2019
2020
$0
Q1 2021
Asking rents - Grade A
Asking rents - Grade B
Vacancy rate - Grade A
Vacancy rate - Grade B
2021 Q1
2017
5%
$10
2020
0%
10%
$20
2019
$0
$30
2018
5%
15%
2017
$5
20%
Vacancy Rate (%)
30%
Asking Rent (US$/sqm/month)
$30
Growth rate
Asking rents (US$/sqm/month)
Hanoi Office, Market Performance by Grade
0%
Grade A Asking Rent
Grade B Asking Rent
Grade A Vacancy Rate
Grade B Vacancy Rate
Source: CBRE Vietnam Research, Q1 2021. Note: Asking rent is quoted on NLA, excluding VAT & Service charges. EXCLUSIVE TENANT EVENT| Q1 2021
6
© 2021 CBRE, INC.
POSITIVE NET ABSORPTION TREND FOR ALL GRADES Hanoi Office, Net Absorption
Hanoi Office, New Transactions by Purpose
120,000
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
NLA (sqm)
100,000 80,000 60,000 40,000 20,000 -
7%
2%
31%
48%
33%
17%
2017
2018
Net Absorption - Grade A
2019
2020
Q1 2021
Net Absorption - Grade B
29%
17%
13%
2020
Q1 2021
Contraction
Expansion
Relocation
Renewal
New Letting
Source: CBRE Vietnam Research, Q1 2021. The statistics are based on the total number of transactions.
Source: CBRE Vietnam Research, Q1 2021. Note: Asking rent is quoted on NLA, excluding VAT & Service charges.
EXCLUSIVE TENANT EVENT| Q1 2021
50%
17%
2019
(20,000)
38%
7
© 2021 CBRE, INC.
TRANSACTIONS AND LEASING ACTIVITIES Hanoi Office, New Transactions by Industry
Hanoi office, top leasing transactions in Q1 2021 Industry
Size (sqm)
Purpose
Region
Grade
Manufacturing
Banking
2,600
Relocation
Midtown
A
E-commerce
Banking
1,100
Renewal
Midtown
B
Finance
800
Relocation
CBD
A
Finance
750
Expansion
West
B
Insurance
742
Relocation
CBD
A
Pharmaceutical
645
Renewal
West
A
Manufacturing
500
Renewal
CBD
A
Banking
500
Relocation
Midtown
A
Banking/Finance/Insurance IT/Tech
Logistics Education Energy Flexible workspace
0% 2019
10% 2020
20%
30%
40%
50%
60%
Q1 2021
Source: CBRE Vietnam Research, Q1 2021. The statistics are based on the total NLA of transactions. EXCLUSIVE TENANT EVENT| Q1 2021
8
© 2021 CBRE, INC.
DECENTRALISATION CONTINUES Hanoi Office, Top Relocation areas by sqm, Q1 2021 3,500
High quality management, building specifications
3,000
Sqm
2,500 2,000 1,500
Strong location, improving accessibility
1,000 500 0 CBD
Midtown
Source: CBRE Vietnam Research, Q1 2020. EXCLUSIVE TENANT EVENT| Q1 2021
West
Competitive financial ©incentives 2021 CBRE, INC.
WILL THE METRO-LINE FURTHER DECENTRALISATION?
Source: VN Express / Giang Huy EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
AND SOME TAKE ADVANTAGE OF THE MARKET TO EXPAND Hanoi Office, Top Expansion transaction, Q1 2021 Source: Taichinhdoanhnghiep, March 2021
5,000 4,000
SQM
CBRE APAC Survey: APAC Respondents’ attitudes still more positive regarding increase in office space vs. Global Respondents
3,000 2,000 1,000 0 2020
Q1 2021
Finance/Banking/ Insurance
E-commerce
Source: CBRE Vietnam Research, Q1 2020.
EXCLUSIVE TENANT EVENT| Q1 2021
Source: CBRE APAC, the Future of Work, Q1 2020.
© 2021 CBRE, INC.
EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
FUTURE OFFICE SUPPLY 2021 ~228,000 m2
Hanoi office, notable future projects 1
6
HUD Tower Techno Park Tower (*) NLA: ~90,000 sqm NLA: 48,000 sqm
10
3
5
8
7 3
11
2
Vinacomin Tower NLA: 38,000 sqm
4
9
5
4
BRG Tower (*) NLA: 5,000 sqm
6
2022 onward 150,000 m2+ 8
7
Lancaster Luminaire NLA: 20,600 sqm
36 Cat Linh NLA: 16,000 sqm
10
9
BRG Grand Plaza NLA: 26,000 sqm
Lotte Mall Hanoi NLA: 45,000 sqm
11
2 1
Source: CBRE Vietnam Research, Q1 2021 EXCLUSIVE TENANT EVENT| Q1 2021
Epic Tower NLA: 25,000 sqm
Intracom Riverside NLA: 22,000 sqm
The Valley Smart Building NLA: 39,500 sqm
(*) Buildings are partially owner occupied. Listed NLA is area available to rent. © 2021 CBRE, INC.
EXCLUSIVE TENANT EVENT
|
Q1 2021
AGILE WORKPLACE 02
EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
WHAT IS AGILE REAL ESTATE?
WHY FLEX? WHY NOW?
Real estate that is dynamic and nimble in supporting organizational objectives and employee needs-today and tomorrow
Headcount Insurance
Run Rate Reduction
Reduce Capital Expenses
SPECTRUM OF SOLUTIONS
Coworking
Incubator / Accelerator
EXCLUSIVE TENANT EVENT| Q1 2021
Serviced Offices
Enterprise Solutions
Turnkey 16
Short Term Lease
Long Term Lease
©
Owned Asset 2021 CBRE,
INC.
OCCUPIER SHIFT TO AGILE SOLUTION
10,000 “on demand” flex memberships in the Americas
WFA till 2021, then hybrid
“Top 10 Tech Firm” 5,000 flex desk deal in India
73% of respondents expect flexible office space will play some role in future strategy.
WFH till Q3 2021, then hybrid
1,000 “on demand” flex memberships globally EXCLUSIVE TENANT EVENT| Q1 2021
“Virtual First” © 2021 CBRE, INC.
THE SHIFTING MINDSET TOWARD FLEXIBLE WORKING
Standard Chartered Bank unveils permanent move to flexible working from 2021
Source: Strait Times, Nov 2020
EXCLUSIVE TENANT EVENT| Q1 2021
CORPORATE SENTIMENT TOWARDS FUTURE OF WORK
Source: CBRE, April 2021
© 2021 CBRE, INC.
VIETNAM MARKET IS STILL AT A NASCENT STAGE Hanoi & HCMC Flexible Workspace, Supply & Expansion
Total GFA (sqm)
80,000 60,000
60%
40,000
30%
20,000
0%
0
Growth rate
Negative growth in 120% HCMC 90%
100,000
-30% 2017
2018
Supply - HCMC Growth Rate - HCMC Source: CBRE Vietnam Research, Q1 2020.
EXCLUSIVE TENANT EVENT| Q1 2021
2019
2020
Q1 2021
Supply - Hanoi Growth Rate - Hanoi
Total Stock
Grade A Penetration
Total Penetration
HCMC
84,900 sqm
3.9%
4.4%
Hanoi
63,842 sqm
1.2%
1.8% © 2021 CBRE, INC.
HIGH PREFERENCE ON FLEXIBLE WORKSPACE FROM OCCUPIERS RAISED NEW BUSINESS DEVELOPMENT Different Approaches Of Landlords in Adopting Flexible Workspace Into Their Buildings
Flexible Space in Vietnam Take leasing risk and fill Use revenue sharing up vacant space with model with operators agile space tenants Develop agile space business as value-added services to tenants Widen space offerings – event space and wellness facilities Let agile office operators as tenants
Asset enhancement by space conversion and introduce agile space tenants
Stake acquisition of M&A In agile office operators
Asset redevelopment Into agile space
Source: 2020 Global Occupier Sentiment Survey, CBRE Research, September 2020. EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
21
OFFICE WORKERS WANT FLEXIBILITY
38% Will adapt a hybrid model with both remote and office -based work
27% Will reduce staff density in workplace
Source: “Emerging Trends in Real Estate Asia Pacific 2021 Survey”, PWC. EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
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FASTER. BETTER. TRANSPARENT. EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
EXCLUSIVE TENANT EVENT
|
Q1 2021
Q&A SITE TOURS 03
EXCLUSIVE TENANT EVENT| Q1 2021
© 2021 CBRE, INC.
EXCLUSIVE TENANT EVENT
|
Q1 2021
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