As the West dominates the future pipeline, older buildings will face increasing pressure to upgrade and differentiate against greener, higher-specification developments.
Hanoi, June 2026 – Cushman & Wakefield’s Hanoi MarketBeat Q1 2026 shows continued expansion in the office market. Approximately 29,900 sqm of new net leasable area was delivered from two LEED-certified projects in the West, reinforcing the area’s position as the city’s key growth corridor for modern office supply. Looking ahead, around 370,000 sqm of new office space is scheduled between 2026 and 2028, with the West accounting for 76% of the upcoming pipeline.
" Hanoi’s office market is moving into a more competitive phase, with the West emerging as the focal point of future supply," said Thuan Nguyen, Director, Leasing Agency & Tenant Representation, Cushman & Wakefield Vietnam. " The upcoming office pipeline presents a clear signal of where the market is heading: toward higher-quality, more sustainable and better-managed buildings. Existing assets will need to adapt to a more competitive leasing environment. Landlords that invest in asset quality and tenant experience will be better placed to capture demand as occupier expectations continue to evolve."
SUPPLY: SUSTAINABLE SUPPLY EXPANSION IN THE WEST
In Q1 2026, the market welcomed approximately 29,900 sqm of new NLA from two new projects in the West, comprising one Grade A and one Grade B project. Both projects are LEED-certified, highlighting a strong shift toward ESG standards.
This reflects increasing developer focus on environmental standards and aligns with rising occupier expectations for greener buildings that support ESG objectives and long-term operational efficiency.
DEMAND: DIVERGENT PERFORMANCE
In Q1 2026, Hanoi’s office market continued to record diverging performance across Grade A and Grade B segments.
Grade A occupancy rose to approximately 78% (+0.7 ppts QoQ; +3.4 ppts YoY), indicating stable demand from occupiers seeking modern specifications and professional building management. The banking, finance and technology sectors remained the primary demand drivers during the quarter.
By contrast, the Grade B segment recorded a modest correction, with occupancy easing to around 83% (-1.1 ppts QoQ; -0.1 ppts YoY). This movement largely reflected the delivery of three Grade B projects in late 2025 and early 2026, which temporarily increased available supply. Notwithstanding this near-term impact, underlying demand for cost-efficient, well-located Grade B offices remains resilient, underpinned by ongoing infrastructure improvements in emerging office submarkets.
PRICE: RESILIENCE VS. COMPETITION
In Q1 2026, the average asking rent for Grade A offices in Hanoi reached USD 32.1 per sqm per month (+0.2% QoQ; +0.4% YoY). Meanwhile, the Grade B segment recorded a slight softening on a year-on-year basis, with rents changing by +1.0% QoQ and -0.6% YoY.
This divergence was primarily driven by new Grade B supply entering the market, which heightened competition and led landlords to implement more flexible leasing terms.
OUTLOOK: INTENSIFIED COMPETITION WITH UPCOMING HIGH-QUALITY SUPPLY
Hanoi’s office market is expected to see significant expansion, with approximately 370,000 sqm scheduled between 2026 and 2028.
The West accounts for 76% of upcoming stock. Older buildings face mounting pressure to renovate to remain competitive against newer, high-specification and green-certified projects.
Click here for more insights from Cushman & Wakefield’s Hanoi MarketBeat Q1 2026.