The Rise of Green-Certified Office Spaces
According to Knight Frank, approximately 48% of major transactions in Q3/2025 were driven by logistics companies, reflecting a significant shift in leasing demand. Beyond large floor areas, averaging 1,500–3,000m², these businesses prioritize green-certified buildings.
This trend isn’t confined to Ho Chi Minh City. In Hanoi, 100% of major leasing deals in the past quarter occurred in green-certified buildings, signaling a clear shift toward quality and sustainability among businesses.
Alongside the logistics sector’s rise, demand for higher-quality offices continued to dominate in HCMC, accounting for 54% of transactions. Many companies are restructuring workspaces, moving from older buildings to modern offices that better support operations and employee welfare.
Businesses increasingly opt for green-certified offices – Illustration
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Net Absorption Plummets in Hanoi
HCMC’s average rent in Q3 was $40.4/m²/month, down 1% quarterly and 1.6% yearly. This slight reduction stems from landlords’ flexible leasing policies amid limited new supply. Hanoi’s average rent remains significantly lower at $24.2/m²/month.
By grade, HCMC’s Grade A rents averaged $59.9/m²/month (down 1.5% quarterly), while Grade B rents were $33.2/m²/month (down 0.5%). Many landlords in central and non-central areas reduced rents and offered rent-free periods, lowering the vacancy rate to 13% (87% occupancy), a positive sign of effective incentives.
Conversely, Hanoi’s occupancy fell to 83%, down 0.9 percentage points quarterly, due to increased vacancies in Grade B buildings, particularly older properties and newly completed projects.
HCMC’s leasing demand remained robust, with net absorption of 18,400m² in Q3 (up 9.4% quarterly and 1.7% yearly), driven by logistics expansion. Hanoi’s net absorption dropped 66% quarterly to 6,300m², though high-quality buildings like Grand Terra and Capital Place maintained stable occupancy, thanks to multinational demand, especially in IT.
Source: Knight Frank
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Hanoi’s Future Supply Concentrated in West Lake West
HCMC saw no new supply in Q3, maintaining 1.8 million m² of Grade A and B offices. District 1 remains the core, accounting for over half of total supply. Hanoi added 27,800m² from Pearl Tower (My Dinh), reaching nearly 2 million m², with 70% in central and western areas.
Knight Frank forecasts HCMC’s Q1/2026 supply to include The Kross (32,000m²), the first major Grade A addition in years. Total future supply (Q4/2025–2026) is modest at 32,000m².
Hanoi expects 101,800m² of new offices in Q4/2025–2026, mainly in Ba Dinh, Cau Giay, and Bac Tu Liem. By 2030, West Lake West will add nearly 600,000m², comprising 40% of future supply, likely pressuring occupancy and rents.
Source: Knight Frank
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HCMC Faces Grade B Shortage Until 2028
Knight Frank reports no new Grade B projects in HCMC’s CBD until 2028, due to rising land and construction costs. Limited CBD land meeting Grade B standards has shifted new supply to lower-tier segments or non-central areas.
Alex Crane, Managing Director of Knight Frank Vietnam – Photo: Knight Frank
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Alex Crane, Knight Frank Vietnam’s Managing Director, notes the mismatch between mid-range demand and supply. “A tenant seeking 2,000m²—typical for MNCs—has only two CBD options, both over 10 years old,” he said.
CBD Grade B rents average $42/m²/month, $10–20 higher than non-central areas. Nearly 60% of CBD buildings pre-date 2015, with only 17% green-certified (vs. 57% for Grade A), highlighting urgent upgrade needs.
Crane sees this supply gap as both challenge and opportunity. “Future Grade B supply is 60% in South Saigon, with growth potential due to land availability and infrastructure. Meanwhile, older CBD buildings should modernize and adopt flexible operations to attract MNCs increasingly demanding green standards.”
– 07:20 22/10/2025
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