Hanoi, 10th Feb 2026 – Cushman & Wakefield unveiled its Q4 2025 Hanoi Office Marketbeat Report, encapsulating the key highlights of the Office segment in the last 3 months. According to the report, the West of Hanoi remained the most active office hub in 2025, driven by a wave of new Grade B supply and sustained tenant demand for cost-efficient, modern workspaces.
“West Hanoi is increasingly emerging as the city’s primary office growth engine,” said Thuan Nguyen, Director of Leasing, Cushman & Wakefield Vietnam. “This shift is being driven by a combination of structural factors, including the availability of larger development plots and the ability to deliver office projects within a more coherent, master-planned urban framework compared to the historic core. As congestion and supply constraints persist in central districts, the West offers developers and occupiers greater flexibility to develop modern, efficient office buildings at more competitive rental levels, in line with evolving occupier requirements.
“From an occupier perspective, West Hanoi aligns well with changing workplace strategies,” he added. “While cost efficiency remains a key consideration, occupiers are placing increasing emphasis on efficient and flexible floor plates, building scale, construction quality, and compliance with green standards. Although the recent influx of Grade B supply has temporarily impacted occupancy, demand fundamentals remain intact. Looking ahead, buildings that combine strong specifications, green certifications, and professional asset management will be best positioned to outperform as competition intensifies and the market matures.”
SUPPLY: Grade B Remains the Core Driver of New Supply
In 2025, Hanoi’s office market saw the majority of new supply coming from the Grade B segment, which continued to dominate the market structure. Grade B offices accounted for approximately 57% of total stock, while Grade A buildings represented the remaining 43%. In Q4 2025, the market welcomed two new Grade B developments in the West, adding nearly 79,000 sqm of NLA. This new supply further reinforces the West’s position as the city’s most active office hub, supported by ongoing infrastructure upgrades and strong tenant demand for cost‑efficient, modern office space.
Supply And Absorption Q4 2025
Source: Cushman & Wakefield
DEMAND: Performance DIVERGENCE Between Grade A and Grade B PERSISTED in Q4 2025
In Q4 2025, Hanoi’s office market continued to show a clear performance divergence between the Grade A and Grade B segments. Grade A offices recorded a modest improvement, with occupancy rising to over 77%, equivalent to an increase of 1.01 percentage points QoQ and 2.46 percentage points YoY. This steady growth indicates that demand for higher‑quality office space remains stable, particularly among multinational corporations and companies prioritizing modern specifications, central locations, and strong building management.
Meanwhile, Grade B segment experienced a temporary decline, with occupancy easing to around 85%, representing drops of 4.97 percentage points QoQ and 4.44 percentage points YoY. The downward shift was primarily driven by the launch of two new Grade B office projects, which added significant new supply to the market. Meanwhile, the robust pipeline underscores sustained tenant interest in cost‑effective, well‑located Grade B buildings, especially in emerging office hubs where infrastructure and amenities continue to improve.
Price: Rental Stability at GRADE a While Grade B Adjusts to New Supply
In Q4 2025, the average asking rent for Grade A offices in Hanoi reached USD 31.85 per sqm per month, remaining stable QoQ and up 2.65% YoY. In contrast, the Grade B segment recorded a slight softening in rents, declining 0.32% QoQ though still posting a modest 0.88% YoY increase. This mild quarterly drop can be attributed to the sizable influx of new Grade B supply, prompting landlords to adopt more flexible leasing strategies, including competitive pricing and enhanced incentive packages, to secure occupancy amid intensifying competition.
MARKET PERFORMANCE Q4 2025
Source: Cushman & Wakefield
All rents are inclusive of service charges but exclusive of VAT
USD/VND = 26,500 as of Q4 2025
OUTLOOK: Intensified competition with upcoming high-quality supply
Hanoi’s office market is set for strong growth from 2026 to 2028, with nearly 300,000 sqm of new supply expected. The West will lead this expansion, contributing about 60% of the pipeline as it continues to develop into a major office hub. Developers are increasingly focusing on modern specifications and green-certified buildings to stay competitive, reflecting rising tenant demand for sustainable, efficient, and well‑designed workspace. Projects that meet these standards are expected to perform better, while older assets may face pressure to upgrade to remain viable.
