Hanoi’s office market is entering a new phase of evolution, as a decade of rapid expansion gives way to a more quality-driven, decentralised and occupier-focused market, according to Cushman & Wakefield Vietnam.
Over the past ten years, Hanoi’s total office supply has expanded by around 160%, reaching approximately 1.74 million sqm by 2025. Grade A stock has led this growth, rising faster than Grade B and giving occupiers a broader range of high-quality options at the top end of the market. At the same time, Hanoi remains one of the Asia Pacific cities with the smallest Grade A office footprints, despite having some of the region’s highest rents.
This combination reflects a market that is still relatively constrained in premium supply by regional standards, while continuing to attract demand from occupiers seeking better-quality, more efficient and future-ready workspace.
Source: Cushman & Wakefield Research
“Hanoi’s office market is no longer defined simply by expansion in volume, but by a clear shift in what occupiers value,” said Thuan Nguyen, Leasing Director, Cushman & Wakefield Vietnam. “Tenants are becoming more selective, prioritising quality, operational efficiency, location strategy and ESG credentials. This is reshaping leasing decisions across the city.”
A key structural trend is the continued decentralisation of office supply. While Hoan Kiem remains Hanoi’s traditional CBD, office supply today is spread across multiple districts including Ba Dinh, Dong Da, Cau Giay and Tay Ho. Ba Dinh hosts a strong concentration of premium buildings, while Cau Giay accounts for the city’s largest office stock. Looking ahead, market momentum is shifting further west, with Starlake and Tay Ho Tay expected to attract significant attention as the next major office clusters.
The market’s recent performance also points to a growing flight to quality. Before 2021, most office buildings in Hanoi were operating at occupancy levels above 80%. Since then, occupancy has adjusted following a substantial influx of new supply, with the market expanding by roughly 40% over the past five years. Within that adjustment, Grade A buildings have shown improving resilience while Grade B assets face softer demand, signalling that occupiers are increasingly reassessing workplace requirements and gravitating toward better-performing assets. In 2025, Grade A asking rents stood at approximately USD 31.85 per sqm per month, compared with USD 20.85 per sqm per month for Grade B.
Another defining shift is the rise of green-certified office stock. New certifications and upgrades across Hanoi are steadily raising market expectations and pushing older assets to remain competitive through renovation and repositioning. LEED- and EDGE-certified buildings are becoming more visible across the market, reinforcing the growing importance of sustainability and building performance in occupier decision-making.
Demand continues to be driven by core sectors such as information technology, banking and finance, and manufacturing. Hanoi, in particular, has seen strong demand from manufacturing-related occupiers, while increasingly emerging as an attractive expansion destination for companies seeking larger floorplates, more competitive occupancy costs and better-quality new Grade A developments.
Looking ahead, Hanoi is set for a significant supply wave over the next three to five years, with more than 120,000 sqm of new office space expected to enter the market annually, largely in Grade A projects outside the traditional CBD.
“Hanoi is becoming an increasingly attractive option for companies planning long-term growth in Vietnam. Compared with other regional markets, the city offers a competitive occupancy cost base, while the upcoming Grade A pipeline — particularly in areas such as Tay Ho Tay — will deliver the modern, high-spec office environment that many occupiers now seek,” Thuan Nguyen added.
Source: Cushman & Wakefield Research
As the market continues to mature, Hanoi’s next chapter is expected to be shaped by decentralisation, flexible workplace design, operational excellence and ESG-aligned development. Well-managed, transit-oriented and mixed-use office projects are likely to be best positioned to capture future demand.