Choosing a location for your business
17-07-2013
Even though different types of tenant requirements can vary hugely depending on what is important to their business, there are fundamental factors which generally speaking are important to all tenants.
These include health and safety, property management, availability of amenities (e.g. schools, banks, hospitals, food and beverage outlets...) and of course the rental rate which should be sustainable for the business to remain sustainable.
Hanoi Office Market - there has been a recent trend of new office development in the west of Hanoi with buildings offering considerable lower rentals then in Hoan Kiem district.
However these new developments are not suitable for all tenants for a variety of reasons.
Some examples include, employees having to travel long distances to work and therefore employers are concerned about their ability to attract and retain talents, proximity from their clients, traffic congestion and the availability of affordable food and beverage for their staff.
Dong Da and Ba Dinh are two highly populated districts located relatively close to the Centre Business Districts (CBD), however the office rental in these locations are considerable lower.
The total office stock for Grade A & B amounts to circa 227,000 square metre. The buildings in these areas benefit from an excellent arterial road network between the (CBD) and the My Dinh (West).
We foresee that this area will undergo significant redevelopment due to the availability of land and the proximity to the CBD.
As far as floor plan layout is concerned, tenants generally aim to acquire flexible space which maximises usable floor area while minimising circulation space. Regular shaped floor plates provide tenants with an efficient layout to design their space.
The electrical capabilities of office buildings are crucial for most tenants. Occupiers require a reliable distribution of power due to the critical nature of their businesses operation and the high costs associated with a system failure.
Generally the larger their data network, the more complex costly it is to reinstate the system.
Deciding on which building to lease is an important decision as the relationship between the landlord and the tenant generally spans over many years.
To mitigate the risk of choosing an unreliable landlord tenants can take a number of steps which including choosing a landlord with a good reputation and an existing track record of office developments, performing due diligence of the financial standing of the landlord and negotiating the lease in such a way that provides the tenant with flexibility terminate the lease in the event the landlord fails to full fill their obligations.
Tenant representation is a service which is generally used by multinational organisations operating in Vietnam.
These companies have high expectations as they operate in many different markets which are often more developed than Vietnam.
There is sometimes a void between what a multinational tenant is comfortable with and what a Vietnamese landlord sees as acceptable.
In almost every example the solutions is a compromise, the tenant has to be flexible and understand the market practice in Vietnam, equally the Landlord in some circumstances has to accept certain ‘Organisational Corporate Standards’ which the tenants can not compromise on.
This can often be frustrating for both sides, however a Tenant Representative is on hand to help tenants navigate their way through any potential pitfalls.
http://vir.com.vn/news/en/property/choosing-a-location-for-your-business.html
