The trend of moving rental space from the street to the street

To save some costs, many stores choose the upper floor instead of the first floor. Segmentation of premises townhouse The upper floor is also considered an opportunity for small businesses to get premises at a reasonable cost but still have access to street business.

Mr. Cuong is the owner of a shop selling home decorations, just moved from the alley to the street. Although choosing to rent on the 2nd floor reduces the cost by about 1/3 compared to the 1st floor, having access to the townhouse premises will significantly increase the number of customers compared to selling goods in the alley.

“In our lane rent about 7-8 million VND. But when we moved to the street, the 2nd floor business cost 15 million VND to rent. The area is larger, so we share it with another unit to share the cost. Here I pay 10 million dong, but we can use 70m2, which is an advantage,” said Mr. Cuong.

Mr. Quang Anh’s furniture establishment (Giang Vo, Ba Dinh, Hanoi) also follows the trend of moving to the big street. He said that the COVID-19 epidemic has changed the business methods of small businesses and changed the demand for renting space of stores.

Quang shared: “Now that the epidemic situation is better, we moved to a new, bigger and nicer facility, but moved to the 2nd floor to reduce the cost of the premises.”

Many stores take advantage of moving from the alley to the street to reach more customers.

According to experts, the rental price of premises on the upper floors of townhouses on main streets in Hanoi is trending down slightly, depending on the utility of each space. This is also a favorable condition for small-scale businesses to recover from the “compression spring” effect after a prolonged period of the epidemic.

Ms. Hoang Nguyet Minh – Senior Director of Commercial Leasing Division, Savills Hanoi said: “For the 2nd and 3rd floor premises, the rent is adjusted, most of them only adjust at 3 to 5%. However, rents in districts a bit further away such as Cau Giay and My Dinh, Savill recorded a stronger decrease of 10 to 15%.”

Also according to Savills, this year, the segment of space for rent for office or business will have a significant improvement in supply, especially the non-CBD area, which is forecast to contribute about 76%.

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