The Eco Lake View apartment building at 32 Dai Tu (Dai Kim ward, Hoang Mai district) has been in use since late 2018, but up to now, dozens of shophouses and most of the commercial service area on the ground floor remain vacant and adjacent to each other.
Here, many storefronts display “for rent” or “for transfer” signs and are always locked up, creating a desolate atmosphere.
Mr. B., the owner of a shophouse at the Eco Lake View apartment building, shared that his family owns a 145-square-meter, two-story shophouse on the ground floor, which they are advertising for rent at 30 million VND per month.
“Currently, online shopping groups are popping up everywhere, delivering goods directly to customers’ homes, making it hard for ground-floor storefronts in apartment buildings to compete. With the economic downturn, sluggish business, and low revenue, we can’t afford the rent. Our shophouse has been advertised for rent for a year now, but we still haven’t found a tenant,” said Mr. B.
Here, the commercial service area on the ground floor of the building also has a lot of vacant space. They are struggling to find tenants with a rental price of about 160,000 VND per square meter per month.
A similar situation is happening at Phuong Dong Green Park apartment building, located at 1 Tran Thu Do (Hoang Liet ward, Hoang Mai district), which was put into use in 2021. However, the ground-floor storefronts and kiosks are mostly vacant, and they are struggling to find tenants.
According to Savills, many commercial centers developed as part of apartment building podiums are facing challenges. This model is less attractive to retailers than large shopping malls, especially for brands in the fashion, cosmetics, and F&B industries.
The retail podium model mainly attracts gym and coffee shop brands. However, the space often includes many columns and elevator lobbies serving the apartments, making them less appealing than large shopping malls.
To address the issue of vacant spaces and the difficulty for new brands to find suitable locations, investors need to have a well-thought-out tenant portfolio strategy. This should ensure a balance between shopping, entertainment, and consumer needs, meeting market demands to attract tenants. At the same time, these enterprises also need to carefully study the demographics of each area to optimize their rental strategies.
From another perspective, the management unit also needs to focus on management services, marketing and advertising programs, entertainment activities to stimulate demand, as well as supportive policies and programs to ensure a steady flow of customers to the commercial center.
The Future of Retail: A $250 Million Vision for Dong Nai’s New Commercial Hub
Aeon Mall Bien Hoa is a bustling shopping center located in the heart of Bien Hoa City’s historic Cù lao Phố area, in the vibrant neighborhood of Hiệp Hòa. Spanning almost 12 hectares, this impressive complex boasts a total investment of over VND 6,000 billion.
The Savvy Investor’s Guide to Profiting from Industrial Land: Buying Shophouse Plots to Await Price Increases
According to industry experts, the new regulations effective from August 1, 2024, are expected to curb the rampant practice of land subdivision and plot sales. While a contraction in the supply of land plots may lead to an upward pressure on prices, this move is anticipated to foster stable long-term growth for this segment, solidifying its position as the preeminent investment avenue.
The Ultimate Guide to 148 Giang Vo: Unveiling the Secrets of this Prestigious Address
The Hanoi People’s Committee has recently approved a master plan adjustment for a mixed-use complex in the city’s Ba Dinh District. This development, located at 148 Giang Vo, will encompass a vibrant mix of commercial, service, and cultural spaces, carefully detailed in a 1/500 scale plan.
Profitable Business Investment Opportunities with Dragon Ocean Do Son Shophouses
Dragon Ocean Do Son (Dragon Hill) is setting a new trend as businesses flock to this ‘promised land’. With an incredible offer of up to 24 months of free location rental, this vibrant hub is buzzing with investors and entrepreneurs, eager to be a part of this exciting opportunity.
Real Estate Investors Focus on Safe-Haven Sectors
Many investors are opting to channel their funds into safe-haven assets such as shophouses in completed projects in central, densely populated areas. These properties offer the immediate benefit of rental and business opportunities, providing a tangible and secure investment strategy.
