2
TOPICS FOR DISCUSSION
• Evolution of the modern workplace
• Trends and drivers
• Consulting global survey results
• How this will impact your office
• Implications for your building and fit out
• Vietnam Office Market Overview & Outlook
• Implications for the building
• I Tower
• The choice for today’s office tenant
4
The World is Changing.
CBRE | Workplace Strategy 4
5
EVOLUTION OF THE MODERN WORKPLACE
6
EVOLUTION OF THE MODERN WORKPLACE
WORKPLACE EVOLUTION
CONVENTIONAL MORE OPEN ACTIVITY
BASED
WORKPLACE EVOLUTION
7
EVOLUTION OF THE MODERN WORKPLACE
CONVENTIONAL
8
EVOLUTION OF THE MODERN WORKPLACE
MORE OPEN
9
EVOLUTION OF THE MODERN WORKPLACE
WORKPLACE EVOLUTION
ACTIVITY
BASED
10
EVOLUTION OF THE MODERN WORKPLACE
EVOLUTION Maximize the opportunities for
INFORMATION EXCHANGE
11
EVOLUTION OF THE MODERN WORKPLACE
WORKPLACE EVOLUTION
FROM PRESENCE TO PERFORMANCE
55% of
working time 45% of working time
PEOPLE PEOPLE
SPACE TECHNOLOGY
TECHNOLOGY
12
EVOLUTION OF THE MODERN WORKPLACE
CASE STUDY - CBRE OFFICE RESULTS
92% less storage
90% less printing
40% more staff in same space
100% staff have laptops
3x number of meeting spaces
4x increase in technology per person
in Hong Kong & Japan
13
EVOLUTION OF THE MODERN WORKPLACE
CASE STUDY - CBRE OFFICES RESULTS
in Hong Kong & Japan
Attract high quality talent
Retain talent
Improve satisfaction & performance
Increase collaboration, innovation, agility, speed
Improve brand awareness and reputation
Lower operating costs: rent, energy, technology
14
EVOLUTION OF THE MODERN WORKPLACE
Organizations do not care how or
where people work as long as they
deliver RESULTS and
PERFORMANCE !
CONCLUSION
15
Criteria
Location
Nearby amenities
Iconic Design and structure
Views
Quality finishes
Dual Power supply
Floor plate efficiency
Sustainability
Full height glass ( access to
natural light)
Building security
Raised floor
CASE STUDY DISCUSSION
President Place
Ho Chi Minh City
Cheung Kong Center
Hong Kong
17
ITS NOT ALL ABOUT THE DESK
17
Desk + storage + Formal Collaboration + Informal Collaboration
COLLABORATE AND CONNECT
FORMAL SETTING INFORMAL SETTING We see rapidly changing
expectations in regard to how,
when and where work
happens
* CBRE 360 WPS collateral
18
CONVENTIONAL MORE OPEN ACTIVITY BASED
• Traditional office layout
• Everyone has an assigned desk
• OUR PAST
• Offices on the interior
• More open / collaborative space
• WHERE WE ARE CURRENTLY
• Various settings for various work
• People share spaces
• A vision of the future…
CBRE | Workplace Strategy 18
SPACES ARE CHANGING
19
THE WORK EXPERIENCE
… its more than just a physical solution
20
The result : improving our efficiency
Reduction in overall space
Right size in the right location
Greater variety of spaces types to work in
More collaborative space
More AV / telepresence
Less on site storage
… and managing our costs
21
CASE STUDY DISCUSSION
Collaborative Space
Brand and identity
22
CASE STUDY DISCUSSION
Flexible Meeting Space
RESULTS
47% reduction in space
Similar saving in energy
Improvement in Staff
Satisfaction and
Productivity
Reputation enhancement
23
CASE STUDY DISCUSSION
COMING SOON
24
“Some people think design means
how it looks. But of course, if you
dig deeper, it’s really how it works”
Steve Jobs
26
0% 10% 20% 30% 40% 50%
Vacancy Rate/Asking Rent
OFFICE - HCMC
AVERAGE ASKING RENT
(US$/sm/month)
VACANCY RATE
(%)
2014 Q2
Q1
2013
Q4
Q3
Q2
Q1
2012
Q4
Q3
Q2
Q1
2011
Q4
Q3
Q2
Q1
2014 Q2
Q1
2013
Q4
Q3
Q2
Q1
2012
Q4
Q3
Q2
Q1
2011
Q4
Q3
Q2
Q1
GRADE B GRADE A GRADE B GRADE A
0% 10% 20% 30% 40% 50% 50% 40% 30% 30% 10% 0% $35 $30 $25 $20 $15 $10 $5 $0 $0 $5 $10 $15 $20 $25 $30 $35
27
Within APAC market
OFFICE
Y-o-Y CHANGE IN PRIME RENT
THE AMERICAS ASIA PACIFIC EMEA
+3.3% +2.9% -0.1% TOP 5 GROWTH MARKETS
19.40%
12.50%11.00%
10.30% 10.20%
Seattle Subburban
San Francisco
Downtown
San Francisco
Peninsula
Houston Suburban
Houston Downtown
15.80%
13.50%
7.70% 7.30%
5.70%
Dublin LondonWest End
Lille Gothenburg Rotterdam
60.10%
16.70%
13.40%
9.30%7.90%
Jarkarta* Kuala Lumpur
Seoul Yeouido
Manila Ho Chi Minh City
Prime rent definition: average asking rent at top three office buildings in the market.
EMEA: Europe, Middle East and Africa
*Leases in Jakarta are typically written in U.S. dollars, but paid in rupiah, which means the occupancy cost increase is greatly
affected by currency depreciation in Indonesia.
Source: CBRE Global, Q1 2014
28
0
20,000
40,000
60,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011 2012 2013 2014
NL
A (
sm
)
Grade A Grade B
Net Absorption
OFFICE
Net absorption per quarter
3-year average
Very restricted new
supply completed in HCMC
Limited leasing
options for existing
tenants
Grade A & B net absorption, Q2 2014
29
Tenant categories
OFFICE
Number is calculated based on CBRE’s enquiries only
New letting: New business start-up, newly opened offices/branches
By number of deals By deal size (sm)
0%
25%
50%
75%
100%
2012 2013 1H 2014
Other Pharmaceutical
Technology/Electronic Finance/consultancy
Legal
0%
25%
50%
75%
100%
2012 2013 1H 2014
Other Pharmaceutical
Technology/Electronic Finance/consultancy
Legal
0%
25%
50%
75%
100%
2012 2013 1H 2014
New letting Expansion Relocation Renewal
0%
25%
50%
75%
100%
2012 2013 1H 2014
New letting Expansion Relocation Renewal
30
Tenant nationality by deal size and source
OFFICE
Ho Chi Minh
City
Hanoi
The Americas
EMEA
Asia Pacific
29.6%
21.0%
36.6%
31
Floor available for sale/long term lease
OFFICE
Address: 561A Dien Bien Phu St, Ward 25, Binh Thanh Dist.
GFA: 37,434 sm
Typical floor plate: 1,592 sm
Expected completion date: Q1 2015
Asking Price: 1,500 US$/sm/term
Term: until 2058
Sub-lease right: yes SSG TOWER
SAIGON ARIPORT PLAZA
Address: 1 Bach Dang, Ward 2, Tan Binh District.
GFA: 18,820 sm
Typical floor plate: 722 sm
Completion: Q2 2013
Average asking Price: 1,750 US$/sm/term
Term: until 2059
Sub-lease right: yes
PRINCE RESIDENCE
Address: 17-21 Nguyen Van Troi, Ward 12, Phu Nhuan Dist.
GFA: 5,543 sm
Typical floor plate: 1,660 sm
Expected completion date: Q3 2015
Average asking Price: 2,650 US$/sm/term
Term: until 2064
Sub-lease right: yes
32
Future supply
OFFICE
SSG TOWER
561A Dien Bien Phu St, Ward 25,
Binh Thanh.
GFA: 37,434 sm
Estimated completion: Q3/2015
VIETCOMBANK TOWER
5 Melinh Square, D1
GFA: 77,000 sm
Expected completion: Q4/2014
VIETTEL OFFICE & TRADE
CENTER
285 Cach Mang Thang Tam, D10
GFA: 65,971 sm
Estimated completion: Q1/2015
LIM TOWER 2
158 Vo Van Tan, D3
GFA: 20,467 sm
Estimated completion:
Q1/2015
33
Outlook
OFFICE
Average rent will keep improving slightly
The vacancy rate will fluctuate (slightly) as new supply
comes to the market but still on an overall downward trend
Limited new supply will come from large scale, mixed use projects and from
those projects developed partly for owner- occupation
35
ITOWER OVERVIEW
36
Asking Price: $19.00 p/sqm Net + $5.00 p/sqm Service Charge + VAT
Completion: Available NOW – from Q3 2014
Typical Floor Plate: 391 sqm Net
Total Office Floors: 11 Floors
A/C System: Centralised AC type VRV/VRF
Lifts: 3 highspeed Schindler lifts
Back Up Power: 100%
Parking 2 basements for car and motorbike parking
Availability Office area: from 2nd floor to 7th floor (8/9/10/F leased)
11/F restaurant
Internal Amenities Bank
Coffee Shop
Restaurant
KEY FEATURES
ITOWER
37
ITOWER - LOBBY
• To move between
headings and bullet
levels, use the
‘Indent List Level’
buttons found on the
‘Home’ tab
NOT the bullet button
38
ITOWER - LIFTS
Heading
Level 1 text
• Level 2 text
– Level 3 text
• Level 4 text
39
PORT Schindler’s 3rd
generation of Destination Control
since 2009
PORT Schindler’s 3rd
generation of Destination Control
since 2009
ITOWER - LIFTS
40
ITOWER - EQUIPMENT
* Transformer station
equipment LS- Korea * Electric devices: SCHNEIDER
* Generator - MTU * Fire alarm – HOCHIKI - USA
41
* Lighting:
SJLITE -MAILAYSIA
•Air condition system:
MITSUBISHI HEAVY INDUSTRIES
WASTE TREATMENT SYSTEM
BƠM TSURUMI
* Hygine devices -TOTO
ITOWER - EQUIPMENT
42
ITOWER VIEW
THANK YOU
© 2014 CBRE (Vietnam) Co., Ltd. This report has been prepared in good faith and with due care by CBRE (Vietnam) Co., Ltd. We obtained some of the information above from sources we believe to be reliable. However, we have not verified the accuracy of the information which we obtained from other sources and make no guarantee, warranty or representation about it. We include projections, opinions, assumptions or estimates which are made with careful consideration of factors known to us for example only, and they may not represent current or future performance of the market. This information is designed exclusively for use by CBRE clients, and cannot be reproduced without prior written permission of CBRE.
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