Sofic Tower: New TDC office leased by Cushman & Wakefield to Ikea and Connell Bros.
Cushman & Wakefield, one of the world’s largest real estate consultancies, note in their Q4 2020 market update the rise of Thu Duc City’s office market after the resolution to merge Thu Duc City with eastern Districts 2 and 9.
Alex Crane, Managing Director of Cushman & Wakefield Vietnam, stated: “The emergence of the new city will set new borders for the appraisal and assessment of the commercial markets. In doing so, we can identify new trends in this very important, new economic center. Thu Duc City’s GDP will be larger than Binh Duong and Dong Nai, and Thu Duc City will become the launching-off point for many businesses in these two powerful manufacturing provinces. In isolation, Thu Duc City is an important innovation and education area that will lead to high-tech jobs, while at the same time raising a flag to investors as a center for investment into critical sectors.”
Based in Ho Chi Minh City, Cushman & Wakefield noted that Thu Duc City currently contributes only 2% of office inventory to the office market between the two hubs, with 26,000m2 of space over a handful of buildings. Within 5 years, Cushman & Wakefield forecast that an additional 390,000m2 of A & B quality office space is penned for the city, with the majority in the new Thu Thiem urban area.
According to Cushman & Wakefield, average rents in Thu Duc City are approximately VND 700,000/m2 per month compared to HCMC’s VND 920,000/m2 per month.