Top 5 Leasing tips
23 February 2017
TOP 5 LEASING TIPS
Statement by: Commercial Leasing, Savills Hanoi
START THE PROCESS EARLY TO ACHIEVE THE BEST CONDITIONS
Ensuring that you have ample time to identify and secure the ideal space and conditions is critical. Savills advise to initiate the process roughly 6 months before the expiry of your current lease. However, for larger occupiers that will need to guarantee suitable quantities of space this should extend to a 9-12 month period, particularly in the CBD where occupancies are high and stable.
QUALIFY AND FORECAST YOUR SQUARE METER REQUIREMENT
Qualify your footprint as definitively as possible, with a view to any possible expansions over the proceeding years. A relocation to a building with high occupancy could force you to move again if there is no room to expand. We advise to aim to secure right to refusal on contiguous space for potential size increases. Landlords can be persuaded to allow staggered uptake of space over the years with incentives attached to them if they are looking to increase occupancy.
CREATE LEVERAGE BETWEEN LANDLORDS
No matter whether you have decided which building is the preferred destination, or if you simply plan to renew, Savills urge tenants to conduct site inspections on similar properties in the market. It enables tenants to secure better conditions and avoids the imbalanced negotiating position of a landlord assuming the process is a foregone conclusion. You may also unearth a deal that might present itself as a more suitable option.
EVALUATE TOTAL COST
Tenants often focus on the square meter rental costs rather than the total sum that will include fitting out, reinstatement, parking, annual increases, and renewal caps. Savills work to illuminate where savings can be made and how to push for them. As an example, reducing a $1.00 per square meter versus free car-parking could lead to be less cost effective over the course of the meeting. Push for incentives and analyze the total monthly cost and total cost of the lease to get a clearer idea of the effective cost that your company will be paying for your new office.
USE SAVILLS TO SAVE TIME AND MONEY
Dealing directly with landlords is time-consuming and could cost you financially, too. With over 20 years of experience operating in Vietnam, Savills know the office market very well. As consultants we can assist you with tenant representative services or as your appointed agent to deal with landlords. We work effectively and efficiently, get the best deal in the market, and always operate professionally and ethically. Our business is built on referrals and word of mouth so we strive to get the best possible deal for our client.
Dinh Huong Linh
National Head of MarCom, Savills Vietnam
+84 4 3946 1300 - 112