Office Decentralization in Ho Chi Minh City – The trend of shifting offices away from the CBD

07-08-2023
Office Decentralization in Ho Chi Minh City – The trend of shifting offices away from the CBD

In the current volatile economic landscape, many businesses are grappling with pressures to return leased spaces and are seeking cost-effective solutions. Among them, technology and financial enterprises are also inclined to downsize office spaces and relocate to suburban areas or opt for affordably priced rental office spaces to cut costs. According to experts, this transformation is referred to as Office Decentralization. So, what is the Office Decentralization trend, and why is it becoming a noteworthy phenomenon?

Exploring the Office Decentralization trend

Definition of Office Decentralization

This is the trend of shifting office spaces and business operations away from the central business district. Office Decentralization is a common trend in the current economic situation. Especially startups, technology, and financial companies are seeking solutions to reduce office expenses. Instead of retaining expensive rental office spaces in city centers, relocating offices to more affordably priced ones is an ideal option. Decentralization brings numerous benefits in terms of cost, convenience, and flexibility for businesses while also fostering sustainable development in the office real estate sector.

Office Decentralization in Ho Chi Minh City

Office Decentralization entails having affordable rental office spaces while ensuring high-quality

Characteristics of Office Decentralization

The trend in the office sector, apart from moving away from the central business district and cost reduction, also has the following characteristics:

  • Good amenities and services: Despite being located outside of the central business district, suburban areas still provide excellent amenities and services. These include convenient transportation, comprehensive infrastructure, ample spaces, and facilities to serve the local residents as well as employees in the office areas.
  • Flexibility and enhanced digitization: Decentralization enables greater flexibility for businesses in organizing work and managing personnel. Moreover, this trend also promotes the adoption of technology in remote management and communication, enhancing work efficiency and connectivity between branches and offices.
  • Fostering sustainable development: This trend contributes to the advancement of the affordable office rental real estate segment, thereby distributing urban burdens, alleviating pressure, and creating a more efficient utilization of space.

Decentralizing offices to areas outside the CBD while maintaining all the amenities of a standard office rental environment

Decentralizing offices to areas outside the CBD while maintaining all the amenities of a standard office rental environment

The current status of Office Decentralization in Ho Chi Minh City

According to Knight Frank, a leading global real estate consultancy, based on their survey conducted in the first two quarters of 2023, office rental prices in Ho Chi Minh City are predicted to continue rising in the future, especially for Grade A or Grade B offices. However, the current trend is that startups and small businesses are gradually shifting their offices away from the CBD. Districts such as Binh Thanh, Phu Nhuan, District 4, District 7, Tan Binh, and Thu Duc are favored due to their affordable office rental prices and comparable amenities. This is attributed to convenient transportation infrastructure, making commuting from suburban areas to the central business district easy and fast.

Why has Office Decentralization become a trend at the current time?

Office Decentralization in Ho Chi Minh City brings benefits to businesses by saving costs, optimizing operations, enhancing flexibility, improving quality of life, and creating fair competition opportunities for small and medium-sized enterprises (SMEs). This aids in improving work efficiency and contributes to the overall sustainable development of the economy and specifically to the office rental market.

In response to the growing needs of post-pandemic businesses, many affordable office rental spaces are also available in Thu Duc City, including District 2, District 9, and the former Thu Duc District. These areas cater to the needs of businesses with competitive costs and high-quality infrastructure. Particularly, the development of public transportation systems such as the Metro line also facilitates commuting and connectivity to other areas of the city more easily.

office decentralization in Ho Chi Minh City

OneHub Saigon – The integrated business park within Saigon Hi-Tech Park

OneHub Saigon – The integrated business park situated at the entrance of Saigon Hi Tech Park in Thu Duc District and adjacent to the Hanoi Highway. It is one of the appealing locations offering competitive office rental costs in comparison to other places in the city with similar quality and infrastructure. In addition to its competitive pricing and alignment with the Decentralization trend in Vietnam, OneHub Saigon also attracts numerous businesses to set up their offices due to the surrounding amenities and the project’s direct connection to Metro Line 1 via a pedestrian bridge.

Currently, OneHub Saigon has successfully completed Tower 1 achieving LEED Silver certification. In the future, there are more buildings following its master plan along with facilities such as commercial centers and training centers. This holds the promise of being an appealing choice for businesses looking to optimize office rental costs while ensuring business efficiency.

Furthermore, OneHub Saigon stands out compared to many other integrated business parks. It not only embraces the noteworthy trend of hybrid working models but also designs office spaces combined with accommodation (Work-Office-Home-Office). These spaces are spacious and well-ventilated enough to create a comfortable working environment for employees.

In addition, the wide floor plates at OneHub Saigon allow businesses to easily arrange their workspaces while the outdoor campus, unlike other buildings, creates a comfortable and unrestricted atmosphere for individuals. Workers living and working at OneHub Saigon can experience a comfortable lifestyle with a full range of surrounding amenities while still ensuring the highest level of work performance.

Inside Tower 1 at OneHub Saigon Business Park

Inside Tower 1 at OneHub Saigon Business Park

Conclusion

Office Decentralization in Ho Chi Minh City – the trend of shifting offices away from the central business district – is gradually becoming a viable solution for businesses amidst challenging economic circumstances. Relocating offices to suburban areas with affordable office rental costs is a smart choice to optimize costs and enhance business efficiency. This trend benefits not only businesses but also employees. It can be seen as a promising and potential shift for sustainable development of businesses in the future, with OneHub Saigon being an ideal choice in East Saigon.

Read more: What is a Green Office?