West Lake set to reshape Hanoi office market with major supply pipeline

A 60,000sqm project is set to be completed in Q2 2026.

Hanoi's office market recorded modest leasing activity in the first quarter of 2026 amid a holiday-related slowdown and growing economic uncertainty, according to JLL.

Grade A net absorption reached just 620 sq m during the quarter, while Grade B net absorption totalled 1,625 sq m, supported by leasing activity at newly completed projects. JLL noted that many occupiers are adopting a cautious approach to office planning amid mounting market headwinds.

More than 36,000 sq m of new net leasable area entered the market during the quarter through two sustainability-focused developments: the LEED Gold-certified The Office in the Tien Bo Plaza complex and the LEED Silver-certified The Marc88.

The new supply pushed vacancy rates higher, with Grade A vacancy rising to 19.2% from 16.5% in the previous quarter and Grade B vacancy increasing to 17.0% from 13.8%.

Despite the increase in available space, rents continued to edge upward. Grade A gross asking rents rose 0.9% quarter-on-quarter to USD37.1 per sq m per month, while Grade B rents increased 0.4% to USD20.6 per sq m per month. JLL said most existing landlords maintained stable rents to remain competitive against newly delivered projects.

Looking ahead, JLL expects the West Llake area to emerge as a major office hub, supported by a substantial pipeline of international-standard mixed-use developments. The upcoming delivery of IFC Hanoi, which will add nearly 60,000 sq m in the second quarter of 2026, is expected to establish new market benchmarks and reshape the city's office landscape over the coming years.