What are the differences between the Eastern and Western office markets?
The office market in the West and the East has shown distinct divergence by mid-2023. While office spaces are largely vacant in the Western markets, there is a trend of increasing office utilization in the Asian markets following the pandemic. In the article below, let’s take a look at the current situation and the reasons behind this phenomenon, and whether Integrated Business Park in Asia as OneHub Saigon might face the issue of office vacancies in the future?
The contrasting situation between the East and West
As of March 2023, the office utilization rates in Europe and the United States are 61% and 48% respectively. Meanwhile, the average figure in Asia is 86%. There is a significant disparity in office utilization between the “two ends” of the axis of the Earth. In interviews, 56% of full-time employees in the US stated that they are capable of fulfilling their assigned tasks without the need of physical presence in the office. With the same question, the percentage in Germany is 51% and 42% in the UK. This also somewhat reflects the situation of “office vacancy” in countries within Europe and the US.
(Data from the second quarter of 2023 report by Savills Impacts)
More than 50% of full-time employees in the US can work effectively from home
The office vacancy rate in the North American market is currently at a record high. For instance, in San Francisco, the rate reached an all-time high of 35.1% in Q2 2023. Before the Covid-19 pandemic, this city used to have the lowest unoccupied office space rate in the US at 9.5%. With a 30% office vacancy rate, this marks a record for the city over the past 30 years.
(Data from the Q2 2023 San Francisco Office Market Report by Savills US)
The offices in San Francisco are currently vacant at a record level
According to Michael McCandless, the Managing Director of Savills San Francisco, most offices in the city are currently operating at about 30% of their maximum capacity. With the rise of the remote working trend in the US, it will be challenging to improve office utilization rates in the short term. Meanwhile, in major Asian cities like Tokyo, Hong Kong, and Ho Chi Minh City, there is a trend of increasing demand for office rentals with office vacancy rates at around 4%.
Experts explain this phenomenon by pointing out that it is currently a phase of recovery and growth for Asian countries. Furthermore, the sense of community connection in both personal and professional aspects of Asian lives is also a logical factor. The work environment places a high value on the connection and interaction among individuals within a collective.
Office vacancy rates in major Asian cities remain low
If considering Asia and North America as the two ends of a balance, Europe would be the equilibrium point. The average office vacancy rate in Europe is 13.7%. However, this rate is predicted to increase in the future due to the growing preference for hybrid working models among the workforce.
OneHub Saigon Business Park – Embracing a New Era with Hybrid Work Model combining Eastern and Western cultures
Businesses in Vietnam are gradually embracing the trend of adopting this hybrid working model. More and more foreign companies are also setting up branches in Vietnam, bringing a fresh breeze into the traditional work culture. It can be observed that more “next-generation” office buildings are emerging, capable of accommodating multiple working models simultaneously.
An exemplary instance of the new generation office space in Ho Chi Minh City is OneHub Saigon. This could potentially be one of the pioneers in the Vietnamese office market in this city. It caters to businesses seeking to establish a hybrid working model within an open working environment that suits both Eastern and Western cultures.
OneHub Saigon has been built in a campus-style office model, with a strong emphasis on landscaping and lush greenery to create a modern and friendly working environment. With a people-centric approach, the landscape design is led by renowned architect Colin K. Okashimo, who has previously won the Architectural Design Award in Singapore. Some of his notable works include Constance Ephelia Resort in Maldives, Pullman Hotel, and Shiseido Spa…
Employee-friendly lush greenery workspace at OneHub Saigon
From its design style to its functionality, OneHub Saigon brings a fresh perspective that was previously unseen in the traditional office market in Vietnam. Additionally, the project directly connects to Station 12 of the Metro Line 1, scheduled to be operational by the end of 2023. There is also a lush greenery workspace designed in a campus-style model suitable for the hybrid working model.
Learn more: Hybrid Working working model – A new trend for offices in the 4.0 era
The ultimate purpose of the campus-style model at OneHub Saigon is to create a friendly workplace to the physical and mental well-being of employees. As a result, workers can fully realize their potential in work and contribute to the establishment of strong and thriving businesses.
OneHub Saigon is a harmonious blend of Eastern and Western work cultures
OneHub Saigon aims to create a modern Tech Hub where individuals can connect, both within the company and with the wider business community, following the Asian work culture. The premises are also designed to accommodate Western working styles, providing ample space for freedom and creativity. There are various areas for employee relaxation, along with participation in physical activities and sports… which is the goal of many global corporations like Google, Apple, and Amazon are also implementing.
Learn more: Why is OneHub Saigon being noticed by many businesses?
While being a Grade A office space, the rental costs at OneHub Saigon are competitive and much more optimized compared to similar-grade offices in the central business district. It is truly a quality choice for businesses, especially for those operating within the strong trend of decentralization taking place in Vietnam recently.
Conclusion
As remote and hybrid work models continue to gain popularity among businesses, the vacancy rates in office spaces in Europe and North America may rise day-by-day in the future. Conversely, the office-based work culture in Asia remains deeply ingrained. The distinct differences between Eastern and Western work cultures have resulted in a noticeable disparity in office space utilization among businesses.
At OneHub Saigon Business Park, both domestic and international enterprises can apply various working models and cultures that are suitable, whether Eastern or Western.
