In Hanoi, the commercial center is a retail model that is interested by a large number of tenants, especially with premises with high quality, full legality and ensuring fire protection standards.
Real estate experts said that the commercial center premises are still the most “popular” with tenants in the retail model segment in Hanoi.
A survey by Savills Vietnam Company shows that in Hanoi, the commercial center is a retail model that is interested by a large number of tenants, especially with high-quality, fully legal premises and ensuring fire protection standards.
However, these must be well-organized commercial centers, from advertising strategies to tenant subdivisions and good operating management models. Because these are also important factors in the operation and maintenance of the commercial center.
Ms. Hoang Nguyet Minh, Senior Director, Commercial Leasing Division of Savills Hanoi commented, the key to the success of the shopping mall now lies in the scientific combination of tenant subdivisions, from shopping and entertainment brands to food services.
Because today’s customers are not only looking for places to shop but also want an integrated experience with entertainment and culinary activities. This is evident in shopping malls such as Lotte Mall, which offers a variety of services from hypermarkets, cinemas, dining areas to fashion stores on different floors.
Recently, Lotte Mall West Lake Hanoi has emerged as a focal point of the retail space market for rent. This is the largest commercial center project in Hanoi, located in a complex including commercial centers, offices, serviced apartments and hotels, offering a unique experience with 233 shops, indoor amusement parks, aquariums. The event recognized a group of 28 brands launching for the first time in Vietnam.
The appeal of this project is a prime example of how modern shopping malls are attracting customers with integrated entertainment, dining and shopping experiences, providing a complete experience for all ages and customers.
It is forecasted that the market supply in the period of 2024 to 2026 will have 4 more shopping centers and 11 retail podiums; including Progress Plaza, E-Mart and The Linc @ ParkCity. This shows that Hanoi’s retail real estate market is on the verge of strong development and promises many innovation opportunities.
Although commercial centers are taking many advantages, in the Hanoi market, experts affirm, location also plays an important role in the decision to rent brands. With the division of regions, each place brings its own unique characteristics to serve the diverse needs of brands.
For example, Hoan Kiem area, as the historical and cultural center of Hanoi, still attracts a large number of civil servants, tourists and local people. This area often concentrates Government agencies, embassies and headquarters of many multinational companies, so it still maintains its own attraction, especially for high-end brands.
In addition to existing brands, many other brands from high-end to luxury in the world are still interested in this area and want to find suitable premises for their brands and models – Ms. Hoang Nguyet Minh analyzed.
In 2024, retail market trends are forecast to be shaped by factors such as increased spending on services, towards sustainable and eco-friendly stores, along with a focus on providing unique experiences to customers.
Therefore, in the future, Vietnam’s retail market will witness strong growth in the F&B industry. Entertainment retailers such as cinemas and amusement parks will also attract a large number of customers.
In addition, the combination of online and offline shopping through omnichannel retail strategy is also becoming popular, providing a flexible and convenient shopping experience for customers. Retailers are creating unique shopping spaces and new experiences, transforming retail into an innovative and engaging experiential destination. This will certainly increase the competitiveness of Vietnam’s retail market in the near future.
The outlook of Vietnam’s retail market in 2024 is still considered to include both opportunities and challenges. On the one hand, retail supply is still limited and reputable developers are holding the majority of high-quality supply, especially in the downtown area. This requires retailers to build good relationships and be willing to pay higher rents to access prime locations.
On the other hand, the number of reputable developers offering high-quality projects in city suburbs has increased, creating opportunities for retailers to have more options in terms of location and affordability. This factor promotes the emergence of new stores in non-CBD locations such as Foot Locker, Karl Lagerfeld or Dyptique at Lotte Mall West Lake Hanoi. Or Muji & Uniqlo, after success at previous locations, has expanded to many non-CBD areas.
Savills Vietnam forecasts that retail supply is expected to increase by 247.601m2 from now to 2025. However, the challenge of limited supply in downtown areas persists as only 0.4% of future supply is in the CBD. Therefore, retailers must continue to look for innovative solutions and flexibility in choosing locations and business models.
